Skip to content

Research – NatGas

I have been in natgas stocks since shortly after the COVID bottom.  I mentioned it here.  They did well, pulled back (and I sold/chickened out briefly) and then took off again.  I’m in a basket of names.  Below is a comparison I did this week.  Rafi Tahmazian made some good points, particularly about how overlooked the Montney is, in a BNN interview a couple weeks ago.  Pretty much sums it up for me.  Meanwhile some of these stocks seem cheap even after the run-up.


Costs (H1 results):

In addition to the usual suspects that I have already mentioned owning (PEY, AAV, PNE), I think Spartan Delta looks very reasonable, has good management, former BXE assets that I am familiar with and thus I like it a lot.  Nuvista is also interesting to me as more of a levered flyer on the Montney and the option that we get a full-fledged price recovery like what Rafi speculates.

One Comment Post a comment
  1. Very interesting! I wonder whether there won’t be a discount opportunity when some of these are forced to report a bath on their hedges. Definitely a good argument to be made for value for a lot of these. AAV’s current EV sits below their remaining interest in the Glacier plant, with a recent data point validating its worth.

    August 23, 2020

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: