Record oil inventories and high debt levels may weigh on the Canadian oil stocks on our list
SmallCapPower | February 9, 2017: Oil prices fell to three-week lows on Wednesday as a result of unexpectedly large U.S. inventory builds for crude oil. With EIA data revealing gasoline and oil inventories are actually higher Y/Y in the U.S., global oversupply concerns may again lead to a downturn in crude oil prices. Today we have identified five Canadian oil stocks with high debt and low liquidity, which could have difficulty servicing debt obligations in a low crude oil price environment.
Greenfields Petroleum Corp. (TSXV: GNF) – $0.27
Oil & Gas Exploration and Production
Greenfields Petroleum Corporation is a junior oil and natural gas exploration and development company focused on the development and production of oil and gas reserves principally in the Republic of Azerbaijan (Azerbaijan). The Company, through Bahar Energy Limited, holds interest in the Bahar Project. The Bahar project includes over 76,500 acres of producing oil field and a producing gas field located approximately 10 kilometers offshore Azerbaijan in shallow waters (over 10 meters) of the Caspian Sea.
- Market Cap: $42 million
- YTD Price PCT Change: -8.6%
- Debt to Equity (FY0): 409.9%
- Current Ratio (FY0): 0.81
Trilogy Energy Corp. (TSX: TET) – $6.25
Oil & Gas Exploration and Production
Trilogy Energy Corp. is a Canada-based petroleum and natural gas-focused energy company that acquires, develops, produces and sells natural gas, crude oil and natural gas liquids. The Company’s oil and gas properties are located in the Kaybob area and Grande Prairie area of Alberta. Its Kaybob area properties include Kaybob Montney Oil Pool Development, Presley Montney Gas Development, Duvernay Shale Oil and Gas Development, Gething Oil Development and Dunvegan Oil Play. The Company’s annual production from the Kaybob area is approximately 26,190 barrels of oil equivalent per day (Boe/d).
- Market Cap: $658 million
- YTD Price PCT Change: -17.2%
- Debt to Equity (FY0): 119.2%
- Current Ratio (FY0): 0.81
Sterling Resources Ltd. (TSXV: SLG) – $0.53
Oil & Gas Exploration and Production
Sterling Resources Ltd. is a Canada-based energy company engaged in the acquisition of petroleum and natural gas rights, and the exploration for, and the development and production of, crude oil and natural gas. Its assets include Breagh and Cladhan. The Breagh field is located in the Southern North Sea, Block 42/13a approximately 100 kilometers offshore the English coast near Teesside. The Breagh field has over eight wells under production.
- Market Cap: $79 million
- YTD Price PCT Change: -11.7%
- Debt to Equity (FY0): 108.5%
- Current Ratio (FY0): 0.10
Bonavista Energy Corp (TSX: BNP) – $4.52
Oil & Gas Exploration and Production
Bonavista Energy Corporation is a resource company engaged in the acquisition, exploration, development and production of oil and natural gas assets. The Company’s West Central Core Area is characterized by natural gas and light oil resources. West Central Core Area is located within the Western Canadian Sedimentary Basin (WCSB) between Calgary and Drayton Valley, Alberta. Its infrastructure in West Central Core Area includes over 2,800 kilometers of pipelines and approximately 40 facilities. Its Deep Basin Core Area contains multiple vertically stacked oil and natural gas reservoirs.
- Market Cap: $1,127 million
- YTD Price PCT Change: -6.0%
- Debt to Equity (FY0): 81.7%
- Current Ratio (FY0): 0.82
Baytex Energy Corp (TSX: BTE) – $4.74
Oil & Gas Exploration and Production
Baytex Energy Corp. is engaged in the business of acquiring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets in Canada (Alberta and Saskatchewan) and in the United States (Texas). The Company’s crude oil and natural gas operations are organized into three business units: Lloydminster, Central and United States. Each business unit has a portfolio of mineral leases, operated and non-operated properties and development prospects.
- Market Cap: $999 million
- YTD Price PCT Change: -27.7%
- Debt to Equity (FY0): 76.8%
- Current Ratio (FY0): 0.77
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