Petrominerales: Remains Undervalued But Is High Risk

Over the last month, I have analyzed four of the five largest oil explorers and producers by proven reserves, operating in Colombia. In this article, I will analyze the third largest oil explorer and producer in Colombia by proven reserves, Petrominerales (PMGLF.PK) to determine whether the company represents a deep value investment opportunity for investors. At the time of writing, Petrominerales has some particularly compelling valuation metrics, including a price-per-flowing-barrel of around $44,000, an EV/EBITDA ratio of 1.6 and a price/operating cash-flow per share ratio of 1. This makes the company on paper appear to be particularly compelling value, even in comparison to its peers such as Gran Tierra Energy (GTE), Pacific Rubiales (...