With Net Asset Values well priced into their market valuation, the TSX oil and gas stocks on our list should respond accordingly to the OPEC meeting outcome
SmallCapPower | November 23, 2016: We’ve mentioned it before: the net asset value (NAV) of a company is the net present value of all of its resource deposits, which ultimately represents how much profit the company can make from those deposits. The NAV can also be used to determine how well the market has priced the company in relation to the value of its resource deposits, and a Price/NAV about 0.70x is referred to as a well-priced company, as companies will often not see all of the calculated benefit from the feasibility assessment. All of the TSX oil and gas stocks on our list today are well priced in relation to their assets, but with that in mind presents an opportunity as we near a decision by OPEC on November 30th. This means that if an output deal is reached, the price of oil will jump, driving up the value of these companies’ assets, with the stock prices likely to follow.
Granite Oil Corp. (TSE:GXO) – $5.53
Oil & Gas Exploration and Production
Granite Oil Corp., formerly DeeThree Exploration Ltd., is a Canada-based oil producer based in Calgary, Alberta with lands and operations located in southern Alberta. The Company is engaged in the exploration for and exploitation, development and production of oil and natural gas. Its Alberta Bakken Properties are located in southern Alberta, approximately 70 kilometers south of Lethbridge. This property consists of an average working interest of approximately 100% in over 393,453 gross (391,633 net) undeveloped acres and approximately 54,434 gross (52,140) net developed acres.
- Market Cap: $185.88(mm)
- 1-day Price PCT Change: 10.4%
- Net Asset Value – Actual (FQ0, Millions, CAD): $218.20
- Price/ NAV: 0.85x
Bonavista Energy Corp. (TSE:BNP) – $4.49
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. Its Deep Basin Core Area is located within the WCSB between Edmonton and Fox Creek, Alberta. The Company’s Deep Basin Core Area’s production averages approximately 21,460 barrels of oil equivalent per day (boe/d).
- Market Cap: $1,176.38(mm)
- 1-day Price PCT Change: 3.7%
- Net Asset Value – Actual (FQ0, Millions, CAD): $1,572.18
- Price/ NAV: 0.75x
Condor Petroleum Inc. (TSE:CPI) – $2.05
Oil & Gas Exploration and Production
Condor Petroleum Inc. is an oil and gas company engaged in exploration and production activities in Kazakhstan. The Company, through its subsidiary, Falcon Oil & Gas Ltd. LLP, owns interest in and operates the Zharkamys West 1 territory, which is approximately 3,780 square kilometers exploration property located in the Pre-Caspian Basin in Kazakhstan. It owns over 2,530 square kilometers of high resolution three-dimensional (3D) seismic and completed both pre-stack time migration and pre-stack depth migration processing.
- Market Cap: $88.15(mm)
- 1-day Price PCT Change: 2.5%
- Net Asset Value – Actual (FQ0, Millions, CAD): $126.62
- Price/ NAV: 0.70x
Surge Energy Inc. (TSE:SGY) – $2.80
Oil & Gas Exploration and Production
Surge Energy Inc. is a Canada-based oil and gas exploration, development and production company. Its principal oil and natural gas producing properties are located in Alberta and Saskatchewan, and focused on over three core areas: Western Alberta, Southeast Alberta and Southwest Saskatchewan.
- Market Cap: $626.51(mm)
- 1-day Price PCT Change: 2.2%
- Net Asset Value – Actual (FQ0, Millions, CAD): $788.52
- Price/ NAV: 0.79x
Africa Oil Corp. (TSE:AOI) – $1.92
Oil & Gas Exploration and Production
Africa Oil Corp. (AOC) is a Canada-based oil and gas exploration and development company with oil and gas interests in Kenya and Ethiopia. The Company focuses on the acquisition, exploration and development of oil and gas assets, located in under-explored geographic areas, in the early phase of the upstream oil and gas life-cycle. The Company has explored on multiple onshore exploration blocks in various geological settings in East Africa. It has made various oil discoveries in the South Lokichar Basin (Blocks 10BB and 13T) located in the Tertiary Rift trend in Kenya.
- Market Cap: $876.32(mm)
- 1-day Price PCT Change: 1.6%
- Net Asset Value – Actual (FQ0, Millions, CAD): $1,338.71
- Price/ NAV: 0.65x
