In order to measure the good health (liquidity and solvency) of a company, how much cash has been generated by the company needs to be analysed. Price/cash flow (P/CF) ratio is a measure of the market’s expectations of a firm’s future financial health. The ratio is considered more reliable than the price/earnings (P/E) ratio to evaluate a company, as cash flow is not easily manipulated unlike earnings which could be easily manipulated through depreciation and other non-cash factors.
Ubika Research has shortlisted thirteen Canadian energy stocks that have recorded low P/CF ratio and significant production growth in the last reported quarterly results. These stocks have P/CF ratio of less than 5, which is considered as an attractive investment from a valuation standpoint. Additionally, the shortlisted stocks have not performed well in the last month due to falling oil prices, which provides significant opportunity for investors to buy these stocks at attractive valuations.
| Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
1-Month Average Volume |
1-Month Price Change (%) |
Price to Cash Flow Ratio* |
Production (BOE) Growth (%)* |
|
Argent Energy Trust |
TSX |
AET-U |
43.58 |
0.70 |
524,220 |
(48.53) |
1.66 |
34.34 |
|
Long Run Exploration Ltd |
TSX |
LRE |
340.56 |
1.76 |
3,604,227 |
(35.53) |
2.24 |
37.57 |
|
Twin Butte Energy Ltd |
TSX |
TBE |
297.49 |
0.85 |
4,652,233 |
(40.97) |
2.57 |
29.01 |
|
Pacific Rubiales Energy |
TSX |
PRE |
2,184.19 |
6.91 |
6,335,363 |
(50.64) |
2.70 |
13.30 |
|
Mart Resources Inc |
TSX |
MMT |
242.72 |
0.68 |
1,607,497 |
(19.05) |
3.07 |
11.00 |
|
Legacy Oil + Gas Inc |
TSX |
LEG |
441.40 |
2.21 |
4,820,684 |
(43.91) |
3.35 |
28.29 |
|
Perpetual Energy Inc |
TSX |
PMT |
150.01 |
1.00 |
218,149 |
(29.58) |
3.40 |
7.35 |
|
Bankers Petroleum Ltd |
TSX |
BNK |
801.43 |
3.07 |
4,505,943 |
(28.27) |
4.01 |
19.27 |
|
Canacol Energy Ltd |
TSX |
CNE |
211.32 |
1.96 |
2,101,949 |
(46.88) |
4.46 |
45.16 |
|
Bellatrix Exploration Ltd |
TSX |
BXE |
794.88 |
4.15 |
3,013,029 |
(18.95) |
4.62 |
73.16 |
|
Yangarra Resources Ltd |
TSX |
YGR |
67.55 |
1.17 |
318,847 |
(20.95) |
4.70 |
35.79 |
|
Enerplus Corp |
TSX |
ERF |
2,372.76 |
11.55 |
2,568,295 |
(32.73) |
4.70 |
18.59 |
|
DeeThree Exploration Ltd |
TSX |
DTX |
444.20 |
5.00 |
1,519,315 |
(18.83) |
4.95 |
62.34 |
Source: Bloomberg
*P/CF Ratio and Production Growth are of latest reported quarters.
Company Description:
Argent Energy Trust (TSX: AET-U)
Argent Energy Trust is an unincorporated open-ended limited purpose trust. The Trust is an energy trust created to provide investors with a publicly traded, oil and natural gas focused, distribution-producing investments.
Long Run Exploration Ltd (TSX: LRE)
Long Run Exploration Ltd. is an intermediate oil and natural gas company focused on the Western Canadian Basin.
Twin Butte Energy Ltd (TSX: TBE)
Twin Butte Energy Ltd. acquires, explores, and develops oil and natural gas properties. The Company currently holds interests in properties located in Alberta, Canada.
Pacific Rubiales Energy Corp (TSX: PRE)
Pacific Rubiales Energy Corporation focuses on the exploration, development and production of heavy crude oil, light and medium oil, and gas in Colombia. The Company also has exploration blocks in Peru.
Mart Resources Inc (TSX: MMT)
Mart Resources, Inc. explores for oil and natural gas. The Company operates in Alberta and Nigeria.
Legacy Oil + Gas Inc (TSX: LEG)
Legacy Oil + Gas Inc. is an intermediate oil and natural gas company. The Company’s light assets are focused in the Williston Basin and southwest Alberta. The majority of Legacy’s production is from Turner Valley, the Bakken light oil resource play in southeast Saskatchewan and the Spearfish light oil resource play in Manitoba and North Dakota.
Perpetual Energy Inc (TSX: PMT)
Perpetual Energy Inc. is an independent natural gas producer. The Company owns, operates, and develops oil and gas properties throughout Canada.
Bankers Petroleum Ltd (TSX: BNK)
Bankers Petroleum Ltd. is an oil and gas exploration and production company. The Company has a working interest in the Patos-Marinza oil field in Albania.
Canacol Energy Ltd (TSX: CNE)
Canacol Energy Limited is an international junior energy company with production and exploration operations located in South America. The Company’s operations are focused in Colombia, Brazil, and Guyana.
Bellatrix Exploration Ltd (TSX: BXE)
Bellatrix Exploration Ltd. explores for oil and natural gas.
Yangarra Resources Ltd (TSX: YGR)
Yangarra Resources Ltd. acquires, explores, and develops oil and gas properties in Canada.
Enerplus Corp (TSX: ERF)
Enerplus Corp. is an oil and gas exploration and production company that owns a large, diversified portfolio of income generating crude oil and natural gas properties. The Company invests in mature crude oil and natural gas producing properties located primarily in western Canada with predictable production profiles.
DeeThree Exploration Ltd (TSX: DTX)
DeeThree Exploration Ltd. explores for and produces oil and natural gas. The Company provides gas transportation through its usage of natural gas production. DeeThree Exploration mines in Canada.
