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Comparing the Oil and Gas Juniors

Earnings season should be upon us shortly for the Oil and Gas junior companies.  To prepare for the onslaught of earnings reports over the next month, I have updated and published below my junior comparison spreadsheet. I’ve added a few new companies to the list of those I follow, with those being Pinecrest and Galleon (now Guide Exploration).

A few things jumped out at me after having reviewe the spreadsheet:

  • We’ve had a big move in Equal Energy from $4 to $6, but even with that move the stock is trading very cheaply on pretty much any metric
  • Skywest really looks cheap compared to its peers.  I used to own Skywest, but I sold it when it looked like they were headed for a cash crunch.  I think it is worth looking at again at these levels.
  • Arcan trades at a premium to its peers.  Just something I like to point out to be aware of.  I believe that it should trade at a premium, but its worth remembering because it suggests that any production hiccup will be severely punished
  • Reliable Energy is starting to look interesting again.  They had some interesting drill results in their last update and are reaching that critical production level (1,000bbl/d) where they will begin to generate the cash flow needed to ramp their production up on a consistent basis

 

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One Comment Post a comment
  1. pogohere #

    You might want to review Marquee (MQL.V) , the successor to Skywest. Excellent resource base, good management, low debt, production increases coming and low number of shares issued.

    March 11, 2012

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