Lower relative debt should also benefit the TSX natural gas stocks on our list if the commodity price stays at current levels
SmallCapPower | January 6, 2017: With natural gas prices hitting a six-week low, we have identified three TSX natural gas stocks (>60% production mix) that have the highest expected revenue growth and lowest relative debt levels to withstand a low commodity price environment.
Storm Resources Ltd. (TSE:SRX) – $5.20
Oil & Gas Exploration and Production
Storm Resources Ltd. is a Canada-based company engaged in the exploration for, and the acquisition, development and production of oil, natural gas and natural gas liquids reserves in the provinces of Alberta and British Columbia. The Company focuses on exploratory and development drilling. Its main areas of activity are located in the Umbach and Horn River Basin (HRB) areas of northeast British Columbia, with minor interests in the Valhalla area of north central Alberta. Storm’s land position at Umbach totals approximately 109,000 net acres, including over 150 net sections. Approximately 40.4 net horizontal wells have been drilled into the Montney formation with over 31.4 net being on production.
- Market Cap: $628 million
- Total Revenue: $73 million
- Total Debt: $71.03 million
- Expected Revenue Growth (y-o-y): 77.1%
Advantage Oil & Gas Ltd. (TSE:AAV) – $8.79
Oil & Gas Exploration and Production
Advantage Oil & Gas Ltd. is an intermediate natural gas and liquids development and production company engaged in the business of natural gas exploitation, development, acquisition and production in the Province of Alberta. It operates in the Montney resource play located in Western Canada. The Company has drilled approximately 20 Montney gas wells and a service well.
- Market Cap: $1,623 million
- Total Revenue: $129 million
- Total Debt: $178.97 million
- Expected Revenue Growth (y-o-y): 58.5%
Kelt Exploration Ltd. (TSE:KEL) – $6.88
Oil & Gas Exploration and Production
Kelt Exploration Ltd. is an oil and gas company based in Calgary, Alberta, and focused on the exploration, development and production of crude oil and natural gas resources, primarily in west central Alberta and northeastern British Columbia. The Company’s land holdings are located in Inga/Fireweed/Stoddart, British Columbia; Grande Prairie (including Pouce Coupe, Progress, Spirit River and La Glace), Alberta; Karr, Alberta, and Grande Cache, Alberta. The Company holds interests in approximately 136,000 gross acres in Greater Grande Cache area, which is located approximately 30 kilometers north of Grande Cache, Alberta.
- Market Cap: $1,197 million
- Total Revenue: $156 million
- Total Debt: $192.16 million
- Expected Revenue Growth (y-o-y): 45.8%
