The Canadian energy stocks we’ve drilled down and discovered have each seen growth in cash flow per share of at least 20% per year over the past three years
SmallCapPower | January 28, 2020: Cash flow per share is typically used in the oil and gas industry over EPS because there are often significant non-cash accounting charges that can skew EPS, such as depreciation or impairment charges. This metric also allows for better comparisons across the sector, has depreciation expenses can be manipulated by management. Cash flow, in this case, is calculated as the operating cash minus capital expenditures. That number removes the effect capex and exploration expenses, as they are considered necessary to grow the business, but does include non-cash expenses such as depreciation, amortization, impairment, deferred taxes, and depletion. Today we have found three Canadian energy stocks that have grown their cash flow per share by at least 20% per year over the past three years.
*Share price data as at January 24, 2020, data obtained from S&P Capital IQ
** Q3F2019 LTM Cash Flow Per Share (CFPS) used as proxy for F2019 CFPS
Parex Resources Inc. (TSX:PXT) – $22.45
Parex Resources engages in crude oil exploration, development, and production in Colombia. Through its subsidiaries, the Company holds interests in ~1.6M net acres of onshore exploration and production blocks. Parex is currently conducting activities in the Llanos and Magdalena Basins in Colombia. On November 6, 2019, Parex posted Q3/19 financial results, highlighted by production of 53,045 barrel per day equivalents and an operating netback of $36.21.
- Market Cap: $3,217.0M
- 90-Day Return: +19.2%
- 3-Year Return: +39.3%
- 90-Day Average Trading Volume: 583,810
- LTM Q3F2019 CFPS: $2.38
- F2016 CFPS: $0.41
- 3-Year CFPS CAGR: +79.8%
Parkland Fuel Corporation (TSX:PKI) – $46.32
Parkland Fuel is a Canada-based independent marketer and distributor of crude oil, refined fuels and other related products. The Company manages a nationwide network of sales channels for retail, commercial, wholesale and home heating fuel customers. The Parkland Retail Fuels segment operates and services a network of retail service stations that serve motorists in Canada and the United States. The Parkland Commercial Fuels segment delivers bulk fuel, propane, heating oil, lubricants, agricultural inputs, oilfield fluids and other related products and services to commercial, industrial and residential customers across Canada and the northwestern United States.
- Market Cap: $6,864.9M
- 90-Day Return: +4.3%
- 3-Year Return: +66.7%
- 90-Day Average Trading Volume: 588,850
- LTM Q3F2019 CFPS: $3.29
- F2016 CFPS: $0.74
- 3-Year CFPS CAGR: +64.3%
Vermilion Energy Inc. (TSX:VET) – $20.79
Vermilion Energy produces oil and gas, and focuses on the acquisition, development and optimization of producing properties in North America, the Europe and Australia. Its segments include Canada, which includes production and assets focused in West Pembina near Drayton Valley, Alberta and Northgate in southeast Saskatchewan; France, which produces oil in France; Netherlands, which produces onshore gas and interests include over 24 onshore licenses and two offshore licenses; Germany, which holds interest in a four partner consortium; Ireland, which includes a non-operating interest in the offshore Corrib gas field located approximately 83 kilometers off the northwest coast of Ireland; Australia, which holds an operated working interest in the Wandoo field located approximately 80 kilometers offshore on the northwest shelf of Australia; and the United States, which has interests in approximately 97,200 net acres of land in the Powder River Basin of northeastern Wyoming.
- Market Cap: $3,240.8M
- 90-Day Return: +0.0%
- 3-Year Return: -62.8%
- 90-Day Average Trading Volume: 1,750,540
- LTM Q3F2019 CFPS: $3.08
- F2016 CFPS: $1.88
- 3-Year CFPS CAGR: +18.0%
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