PRO articles cover stocks that fly under most investors' radar screens.
Seven Generations Energy: A Detailed Analysis Of The Days To Come
- The company's Kakwa River project is at a relatively early stage of development.
- Seven Generations has made long term commitments for take-away capacity.
- This long term mandate dictates the company's production growth by the end of 2016.
- To meet these commitments and replace production declines, the company will have to outspend cash flow in 2015 and 2016.
- The key and debt ratios will deteriorate by the end of 2015.
Blackbird Energy: Buy The Rumor, Sell The News
- 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
- 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?
- 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
- 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
- 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?
- 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
- 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?
- 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?
- 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)
- 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
- 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?
- 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
- 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
- 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
- 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?
- 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
- 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
- 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?
- 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?
- 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
- 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
- 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?
- 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
- 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
- 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
- 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
- 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
- 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
- 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.
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