Nice to SeeInterested in your take on GTE’s entry into Canada and view of this company in general.
GTE is a small-cap company that operates as an oil and gas producer focusing on the Colombia and Ecuador markets. GTE recently announced an acquisition of i3 Energy as a way to increase its presence in the Western Canadian Sedimentary Basin (WCSB) and gain scale in its operation. GTE is trading at only 3.4x Forward P/E and has a track record of repurchasing shares, GTE runs a moderately leveraged balance sheet with a net debt of $506M and net debt/EBITDA as of June 30 (before the acquisition) was 1.3x. GTE is a fine oil name, but we prefer pure-play in the North America market with meaningful capital returns such as TOU, IMO, TVE, HME.V. (5iResearch)