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Tenaz Energy Corp T.TNZ

Alternate Symbol(s):  ATUUF

Tenaz Energy Corp. is a Canada-based energy company focused on the acquisition and sustainable development of international oil and gas assets. The Company has domestic operations in Canada along with offshore natural gas assets in the Netherlands. The domestic operations consist of a semi-conventional oil project in the Rex Member of the Mannville Group at Leduc-Woodbend in central Alberta. The Netherlands natural gas assets are located in the Dutch sector of the North Sea. The Company also has an ownership interest in Noordgastransport B.V., which holds gas gathering and processing networks in the Dutch North Sea.


TSX:TNZ - Post by User

Post by BERationaleon Jan 08, 2024 11:23pm
567 Views
Post# 35816762

Should be a huge 2024... from Hydra

Should be a huge 2024... from HydraNo change in my view here. Tenaz remains one of the best risk-rewards that I’ve seen in recent memory. Currently trading at around 1.5x EV/CF, this $100 million market cap company has about half of its market cap in cash and is actively hunting for/negotiating on deals in the international energy arena, where management has a distinct competitive advantage. The only knocks I hear on TNZ are that the market cap is too small and the stock is too illiquid for most institutions. The management team is stacked. The board is stacked. The capital structure and balance sheet are pristine. Discipline and respect for shareholder value with respect to the M&A strategy are sacrosanct. The only requirement? Patience. TNZ has frustrated more than a few investors over the last two years as they wait for something meaty to chew on in the M&A department, and yet even its small bites made TNZ one of the best performing stocks on the entire TSX in 2023. Not bad for a minnow that is “too small”. I’m of the opinion that TNZ represents a type of arbitrage that I’m constantly looking for… the “embedded re-rate”. As it stands today TNZ is objectively too small for most institutions… their mandates dictate that no matter how much many money managers might like management and/or the story, they actually aren’t allowed to own it under the rules of their funds. This will be the case until it isn’t, and a M&A strategy virtually guarantees that TNZ will grow into a company that a much broader audience will be willing and able to invest in. No deal yet, but as I said… patience.
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