BW Investment Visibility
Long only, deep value, tech, nano-cap

Legacy Oil & Gas: Dramatic Discount To Book Value With A Prosperous Future Ahead

It has not been easy for Canadian Oil stocks this past year. Investors have been concerned with the large disconnect between WTI crude oil prices and the price Canadian oil producers are receiving.

As seen below, the gap between WTI prices and both Canadian oil indexes, the Western Canadian Select and the Edmonton Par has been widening.

The lack of pipeline capacity in western Canada along with growing reserves and production in the US are some of the main factors that have driven the discrepancy in oil pricing. This disconnect has punished western Canadian companies by squeezing margins and detracting investors.

As is the case with many market events, investors may act irrationally by over-reacting to situations. Luckily for us,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details