Current thoughts on SDE; where does it rank in your favorites in the sector?
SDE ranks fairly high in our list of small-cap companies in the energy sector. It is a $2.2B company that pays a 3.9% yield and trades at a cheap valuation. Net debt is low at $66.3M, it generates positive free cash flows, and its balance sheet is healthy. We think it is a strong name, although much will depend on the price of oil and fundamentals can change quickly based on commodity prices. (5iResearch)