Painted Pony Painted Rosy

About: Painted Pony Energy Ltd. (PDPYF), Includes: BIREF, PEYUF
by: Hervé Blandin
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Hervé Blandin
Long only, value, long-term horizon

Painted Pony has been rapidly growing its production and assets.

However, at the current gas prices, the company can not generate profits while growing.

The capital structure associated with high production costs would compromise the company by 2020 if the situation does not improve.

Considering the risks and the capital structure, I would not want to buy shares of the company.

Painted Pony (OTCPK:PDPYF) focuses on the development of natural gas and NGL from the Montney formation in British Columbia. As shown on the picture below, the company has been rapidly growing its production,