Shareholders of Pengrowth Energy (PGH) have good reason to be giddy. In a few short days, Pengrowth has managed to secure about $1B worth of funding for its Lindbergh project, get approval for the project from the Canadian version of the EPA, and significantly boost its proved reserves. Pengrowth has taken an enormous step in its goal of shifting a large chunk of its production towards thermal oil. In addition, the company is also likely to report a solid numbers when it reports its Q2 earnings. Even with these positive developments, Pengrowth still trades at a large discount to its NAV and offers a large monthly dividend.
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Before I get into the...