John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Jones Energy Is An Attractive And Overlooked Recent IPO

Key takeaways

  • Jones Energy (NYSE:JONE) trades at a low EBITDA multiple due to the recent pullback in crude as well as the fact that it is still off the radar for many investors after recently going public.
  • However the twin long term growth drivers of rapidly increasing production and geographic focus in one of the most attractive domestic drilling areas are still intact.
  • High insider ownership and a cornerstone investor provide shareholder stability while a conservative management significantly lowers company specific risk in an inherently risky industry.

Company overview

JONE is an independent exploration and production company operating in the Anadarko and Arkoma basins of Texas and Oklahoma. In July 2013, JONE completed an IPO of 12.5 million...

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