The Energy Select Sector SPDR ETF (NYSEARCA:XLE) was trading as low as $37.40 in March 2009. The index is currently trading at $81.76 or 118.6% above the low made in March 2009.
In this article, I will feature one energy stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
The stock is purchased by three or more insiders within one month.
The stock is sold by no insiders in the month of intensive purchasing.
At least two purchasers increase their holdings by more than 10%.
Spyglass Resources Corp. (OTCQX:SGLRF) is a dividend-paying, intermediate oil and gas company. Spyglass currently operates oil and natural gas properties in Alberta, Saskatchewan and British Columbia.
Insider buying by insider (last 30 days)
- Thomas Buchanan purchased 150,000 shares on August 14, and currently controls 1,093,217 shares or 0.9% of the company. Thomas Buchanan is Chief Executive Officer of the company.
- Daniel O'Byrne purchased 75,000 shares on August 14, and currently holds 291,997 shares or 0.2% of the company. Daniel O'Byrne is President of the company.
- Mazhar Shaikh purchased 185,600 shares on August 14, and currently controls 278,723 shares or 0.2% of the company. Mazhar Shaikh serves as a director of the company.
- Jeffrey Smith purchased 10,000 shares on August 14, and currently controls 18,588 shares or less than 0.1% of the company. Jeffrey Smith serves as a director of the company.
- Mark Walker purchased 50,000 shares on August 14, and currently controls 279,428 shares or 0.2% of the company. Mark Walker is Senior Vice President Finance and Chief Financial Officer.
Insider buying by calendar month
Here is a table of Spyglass Resources' insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 487,600 shares purchased and there have been 6,607 shares sold by the insiders this year.
The company reported the second-quarter financial results on August 12, with the following highlights:
|Funds flow from operations||$20.6 million|
|Monthly dividend||$0.0225 per share|
|Net debt||$296.9 million|
The 2013 capital program is expected to total $67 million including drilling 20 light-oil wells (17 net). Management revised its 2013 exit production guidance to 17,000 boe/d to 17,500 boe/d (51% - 53% oil and liquids), as a result of the deferral of the Noel Cadomin well. Production for 2013 is expected to average 15,500 boe/d to 16,000 boe/d (49% - 51% oil and liquids).
Spyglass Resources' competitors include Vermilion Energy (NYSE:VET), Pengrowth Energy (NYSE:PGH), Arc Resources (OTCPK:AETUF), Enerplus Corporation (NYSE:ERF), Renegade Petroleum (OTC:RPTTF), Twin Butte Energy (OTCPK:TBTEF), Zargon Oil & Gas (OTCPK:ZARFF), Bonavista Energy (OTCPK:BNPUF), Baytex Energy Corp. (NYSE:BTE), Trilogy Energy (OTCPK:TETZF), Whitecap Resources (OTC:SPGYF), Peyto Exploratio & Development (OTCPK:PEYUF) and Lightstream Resources (OTCPK:LSTMF).
Spyglass Resources has the lowest decline rate among these 14 companies. Vermilion Energy, Pengrowth Energy, Baytex Energy, and Peyto Exploration & Development have seen insider selling during the past 30 days. Arc Resources, Twin Butte Energy, Zargon Oil & Gas, and Whitecap Resources have seen insider buying during the past 30 days.
There have been five different insiders buying Spyglass Resources and there have not been any insiders selling Spyglass Resources during the past 30 days. All five of these insiders increased their holdings by more than 10%.
Spyglass Resources' total Proved plus Probable reserves are 91.2 MMboe. Spyglass Resources' total Proved Net Asset Value was $3.69 per share as of December 31, 2012 and the company's total Proved plus Probable Net Asset Value was $5.69 per share as of December 31, 2012.
Spyglass Resources has a book value of $3.93 per share and the stock has a dividend yield of 15.5%. I believe the stock could be a good pick below the book value based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCQX:SGLRF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.