Posts from the ‘Bellatrix Exploration (BXE)’ Category

Jun 22

Taking advantage of the disappointment with Bellatrix

This is a company I should have owned 12 months ago when I was looking around the Canadian oil and gas universe but instead pissed around trying to buy the cheapest thing. When investing in an oil and gas company buying the cheapest thing is simply not the way to make money. I’ve been investing in the sector for 10 years now; every time I walk away and return I have to learn that lesson again. Hopefully that will end now.

Bellatrix Exploration (BXE) is simply a company with lots of land in very prospective areas and a history of being able to grow production on a consistent basis. The stock is on sale because of a bungled private placement and I think that presents an opportunity.

Background about the company

Bellatrix owns one of the largest positions in the Cardium (in Alberta) in the industry.

They’ve proven they can develop that land in an efficient manner. The company has grown its production the last 4 years and expects another strong year of growth in 2014 (note though that the 2014 production number is being buoyed by the acquisition of Angle Energy, which closed late last year). Read more

Nov 4

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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