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PRO articles cover stocks that fly under most investors' radar screens.
  • Blackbird Energy: Buy The Rumor, Sell The News
     • Tue, Mar. 10 BKBEF 10 Comments

    Summary

    • Blackbird Energy is an emerging explorer targeting the Montney formation in Canada.
    • Thanks to its first two Montney wells, the company garnered increased attention over the last months.
    • Hype and speculation pushed the company's valuation to sky high levels.
    • The drilling results were released just a few days ago disappointing the investors who dumped the stock and hit the exits.
  • Hercules Offshore: The Good, The Bad And The Ugly
     • Wed, Mar. 4 HERO 44 Comments

    Summary

    • Hercules Offshore has tumbled dramatically over the last six months.
    • Depressed oil price, drilling weakness in the Gulf of Mexico, fierce competition, lower day-rate contracts and idle rigs make the company's future highly uncertain.
    • The company's indebtedness remains frightening, and turning things around will be a Herculean task.
    • The savvy investors do not need to play with fire, but they had better place their bets to the deeply discounted energy gems instead.
    • I will watch the management actions over the next months in order to evaluate how Hercules will be positioned for the next cycle.
  • Can Magnum Hunter Resources Outperform The Energy Sector In 2015?
       • Tue, Feb. 10 MHR 47 Comments

    Summary

    • The company's production growth is acting as a cover for lack of a path towards actual profits and fundamental improvement.
    • By selling Eureka, Magnum will just buy time but it will have to address its leverage challenge sooner or later.
    • The overstretched balance sheet and the very high multiples will be two key headwinds that will make Magnum's stock underperform in 2015.
    • The traders might like Magnum, but the fundamental investors will definitely steer clear of it, given that they want to outperform the energy sector with the least amount of risk.
  • Cheniere Energy: A Scary Midstream Stock To Avoid
       • Fri, Jan. 23 LNG 73 Comments

    Summary

    • Speculation about global LNG demand has boosted Cheniere's valuation that largely ignores the global LNG supply, among others.
    • Cheniere's highly leveraged balance sheet will not get better anytime soon, if ever.
    • The stock is way ahead of its fundamentals.
    • If the choosy investors want energy exposure, there are better-positioned, cheaper and financially healthier midstream companies available, so I will definitely avoid Cheniere at $74.
  • Epsilon Energy: The Latest Developments Support Its Multibagger Potential
       • Mon, Jan. 12 EPSEF 59 Comments

    Summary

    • I recommended Epsilon Energy at C$4.10 in a "Top Idea" article in late July 2014.
    • Epsilon Energy's stock has performed exceptionally well over the last five months and the stock closed at C$3.98 last Friday, despite the unprecedented slump of the other energy stocks.
    • The latest Upstream and Midsteam deals support Epsilon Energy's multibagger potential, based on an entry price of C$3.98 per share.
  • Halcon Resources And Tuscaloosa Marine Shale: Is This Goodbye Forever?
       • Dec. 27, 2014 HK 90 Comments

    Summary

    • Halcon's Tuscaloosa Marine Shale (TMS) fails to be Halcon's third core play.
    • Based on the latest drilling results, Halcon's TMS wells do not pay out fast even if WTI stands at $90/bbl.
    • Due to these slow payouts, Halcon will not return to the TMS in the foreseeable future.
    • It will be a stock picker's market in 2015.
    • Those investors who are scouring the beaten-down energy sector, they are advised to avoid Halcon because it will not reach its 2013 or its H1 2014 levels again.
  • I Will Definitely Cheat On Storm Resources With Its Natural Gas Weighted Peers
       • Dec. 1, 2014 SRMLF 26 Comments

    Summary

    • Storm Resources is a natural gas weighted Canadian producer with non-existent online coverage to-date.
    • The stock has performed exceptionally well since early 2013.
    • The company will continue growing its production in 2015.
    • Everything has a price tag and Storm's current key metrics are overwhelmingly high compared to the peer group.
    • When it comes to investing in the natural gas weighted companies in North America now, Storm is definitely out of my list.
  • Cobalt International Energy: Is The Slump A Never Ending Story?
       • Nov. 14, 2014 CIE 31 Comments

    Summary

    • Cobalt was an over-inflated stock in 2013, primarily thanks to many analysts who were spreading speculative scenarios about the company's future.
    • In contrast, I stood at the other side of the trade in 2013, writing my first and second heavily bearish article at $27 and at $16 respectively.
    • Given that the fundamentals always prevail, the stock has plunged since 2013, confirming my analysis.
    • Cobalt's stock currently stands at approximately $10.4, while Cobalt's future remains questionable and unclear.
  • Will CAMAC Energy's Bears Continue Laughing All The Way To The Bank?
       • Oct. 31, 2014 CAK 29 Comments

    Summary

    • Thanks to an oil discovery offshore Nigeria, the stock skyrocketed in late 2013.
    • That rally did not have fundamental legs.
    • The lack of fundamentals coupled with several operational delays were the primary reasons why the stock collapsed in H2 2014.
    • The short sellers are now recommended to close their short positions and lock their profits.
    • The prudent investors are highly recommended to stay on the sidelines waiting for the drilling results from the Oyo-7 and Oyo-8 wells.
  • Petroamerica Oil: Welcome To The Cheapest Oil Producer Worldwide (Part 1)
       • Oct. 10, 2014 PTAXF 101 Comments

    Summary

    • Petroamerica was a fantastic buying opportunity at C$0.39 in August 2014.
    • The stock trades less than 1 times its 2014 EBITDA at the current price of C$0.25.
    • An once-in-a-lifetime buying opportunity is an understatement, and I do pound the table on the value this stock currently represents.
  • After An Impressive Payoff, Arsenal Energy Is Not In The Bargain Bin Anymore
       • Sep. 25, 2014 AEYIF 27 Comments

    Summary

    • As usual, the market overlooked Arsenal Energy and its low valuation in late 2013.
    • The stock has doubled since then and the valuation gap with the peers has narrowed significantly over the last nine months.
    • Not to worry, because the market keeps being inefficient and myopic, offering the bargain hunters new opportunities.
  • Surge Energy: Has The Surge Come To An End?
       • Sep. 23, 2014 ZPTAF 42 Comments

    Summary

    • Due to some temporary operational hiccups, Surge Energy plunged in early 2013 and created a unique buying opportunity for the smart money.
    • The stock has recovered sharply since then, yielding more than 150%.
    • Surge's current valuation is reasonable and in line with the peers.
    • The smart money need to look elsewhere to find the next Surge Energy.
  • To Handsomely Beat The Market, Buy Petroamerica Oil With Both Hands
       • Aug. 26, 2014 PTAXF 393 Comments

    Summary

    • Petroamerica made a transformative deal by acquiring Suroco Energy, and addressed all the challenges it was facing.
    • This acquisition significantly strengthens and diversifies the company's asset base.
    • Now, Petroamerica has everything: strong production growth, high netbacks, stellar balance sheet with a strong cash position and an aggressive management.
    • With management focused on continuing to grow, the tremendous valuation gap with the peers can close anytime and Petroamerica's shareholders stand to benefit a lot.
  • Halcon Resources: The Future Remains Questionable And Unclear
       • Aug. 23, 2014 HK 136 Comments

    Summary

    • Halcon's recent speculative rise due to the Tuscaloosa Marine Shale has been gradually coming to an end.
    • Halcon's valuation remains very high although the gradual fundamental deterioration is obvious.
    • There are much cheaper E&P companies out there with low debt ratios and a stellar balance sheet.
  • If You Are An Alpha Seeker Looking For The Next Big Energy Play, Load Epsilon Energy Now
       • Jul. 29, 2014 EPSEF 385 Comments

    Summary

    • Epsilon Energy is a profitable energy company with a pristine balance sheet.
    • The company has two profitable and growing segments (upstream and midstream).
    • It is drilling the sweet spot of the Marcellus shale.
    • Epsilon's stock is a sleeper and the company's current valuation is irrational.
    • Epsilon's stock has to soar to come in line with the peers' valuation.
  • Chinook Energy: After A Triple-Digit Gain In A Few Months, Can It Continue Flying Higher?
       • Jul. 23, 2014 CNKEF 32 Comments

    Summary

    • Chinook Energy was grossly undervalued in December 2013.
    • The company made the decision to sell its Tunisian assets and focus on its Canadian operations.
    • After unlocking significant value over the last months, Chinook Energy has limited upside potential from the current levels.
  • Why Evolution Petroleum Corporation Is Not Currently In My Investment Portfolio
       • Jul. 9, 2014 EPM 56 Comments

    Summary

    • Evolution Petroleum Corporation is engaged in a low risk and slow growth business.
    • The company's stock has enjoyed a nice gain over the last two years, but it has corrected somewhat lately.
    • Further downside from the current levels is not out of the question.
  • Lonestar: High-Conviction Long Idea Remains Irrationally Undervalued Compared To Its Peers
       • Jul. 1, 2014 LNREF 349 Comments

    Summary

    • Lonestar Resources has risen since when I recommended it in early June 2014.
    • From a fundamental perspective, nothing has changed on the company.
    • Lonestar Resources remains a strong buy opportunity compared to its peers.
  • Synergy Resources Corporation: Has The Time Come To Sell This Highflier Junior And Move On?
       • Jun. 27, 2014 SYRG 25 Comments

    Summary

    • Synergy Resources has been successfully developing its acreage at the Wattenberg field over the last two years.
    • The company's stock has risen tremendously over the last two years.
    • Given its current levels, Synergy's stock has run its course and will not outperform the market in 2014.
  • Can American Eagle Energy Corporation Fly High Like An Eagle Over The Next Months?
       • Jun. 19, 2014 AMZG 54 Comments

    Summary

    • American Eagle Energy Corporation is a new growth energy play in the Williston Basin.
    • Although the company has made considerable progress operationally since 2013, it has to improve its balance sheet to attract the debt-averse investors.
    • In this effort, the company will have to face some headwinds that are beyond its control.
  • Lonestar Resources Is The Next Multi-Bagger Getting Ready To Rock In The Lone Star State
       • Jun. 7, 2014 LNREF 351 Comments

    Summary

    • Lonestar Resources is cashing in on Texas Black Gold.
    • The company has a rock solid balance sheet and cheap key metrics.
    • Lonestar Resources is poised to continue its growth and can greatly outperform the market in H2 2014.
  • Athlon Energy: A Good Company But A Richly Valued Stock With Limited Upside From The Current Levels
       • Jun. 3, 2014 ATHL 11 Comments

    Summary

    • Athlon Energy has grown its production and reserves significantly since late 2012.
    • This growth has been reflected by the stock's performance.
    • Athlon is richly valued currently.
    • Those investors who want to maximize the returns of their portfolio had better switch to other cheaper opportunities.
  • Is There Any Hope For Denbury's Stock To Go Higher And Reach Pioneer's Or Concho's Valuation?
       • May. 21, 2014 DNR 8 Comments

    Summary

    • Denbury Resources has a proven and low risk enhanced oil recovery business.
    • The stock has not followed the company's operational improvements thus far.
    • This mismatch might never change over the next years.
  • How To Invest In A Deep Value Investment Opportunity In 3 Easy Steps: Load Caza Oil & Gas, Sit, And Wait
       • May. 15, 2014 CAZFF 336 Comments

    Summary

    • Caza Oil & Gas is a diamond in the rough.
    • The company is an oil-weighted growth play in the Permian Basin with proven assets and a solid balance sheet.
    • Caza's current valuation is severely depressed.
    • Although Caza Oil & Gas is not a biotech or a marijuana stock, its stock offers a potential triple-digit return from the current levels.
  • You Must Be In Denial To Bet Your Farm On SandRidge Energy At The Current Levels
       • Apr. 18, 2014 SD 92 Comments

    Summary

    • SandRidge has taken measures to improve its capital efficiency and grow its production over the coming months.
    • The Mississippian formation will primarily fuel this production growth.
    • The funding gap, the key metrics, the debt and the subpoena from the US Department of Justice do not help me be bullish on SandRidge.
  • Nighthawk Energy Sees Triple-Digit Growth By Hitting Sweet Spots In The Denver-Julesburg Basin
       • Apr. 9, 2014 NHEGY 147 Comments

    Summary

    • Nighthawk Energy is a very well-run company with a sound financial plan.
    • Thanks to its low cost and oily wells that have high IRR and fast payouts (3 months), the company has achieved tremendous growth of late.
    • Nighthawk's fast payout is the kind of short payback that any junior producer needs so that cash can be quickly reinvested in the next well to keep growing production.
    • The company has plenty of running room and the continued development of its core properties will drive production, reserves and EBITDA higher over the coming months.
  • If I Owned Kelt Exploration At The Current Levels, I Would Take The Money And Run
       • Mar. 31, 2014 KELTF 37 Comments

    Summary

    • Kelt's stock has risen tremendously over the last 10 months.
    • This rise is primarily attributed to Kelt's management team and the deal between Celtic and Exxon Mobil.
    • Kelt's stratospheric key metrics are not supported by the fundamentals.
    • Kelt's stratospheric key metrics make it a good short candidate.
  • Midstates Petroleum Is Not Out Of The Woods And Has To Implement Survival Tactics Soon
       • Mar. 27, 2014 MPO 27 Comments

    Summary

    • Two acquisitions made Midstates Petroleum "eat" more than it can "swallow".
    • The company's swallowing disorder has not been treated yet.
    • Midstates Petroleum has to pursue a different strategy to survive.
  • Zargon Oil And Gas Is In The Bargain Bin And Ready To Take Off
       • Mar. 18, 2014 ZARFF 109 Comments

    Summary

    • There are always hidden gems in the oil and gas sector.
    • Zargon Oil and Gas is grossly undervalued no matter how you slice it.
    • Zargon Oil and Gas is too cheap to ignore and has some strong catalysts.
  • A Paramount Reason Not To Buy This Stock: Comparative Valuations Of Bill Barrett And Carrizo Oil
       • Feb. 27, 2014 PRMRF 12 Comments
  • Tuscany International Drilling: Is Something Rotten? (Part 1)
       • Feb. 13, 2014 TIDZQ 68 Comments
  • Canacol Energy Is Fairly Valued But Major Partners Could Create Upside In 2014
       • Feb. 5, 2014 CNNEF 14 Comments