SmallCapPower | February 22, 2017: As the winter season for natural gas is rapidly approaching the end, so are withdrawals of natural gas from storage inventories. As we approach the shoulder season, where withdrawals turn into injections to build inventories for the following winter, we have seen a dramatic 8% drop in natural gas spot prices over the past five days. Today, we have identified five natural gas juniors with a 75%+ production mix of natural gas to oil, that are approaching Price-to-Book values of below 1x.
Painted Pony Petroleum Ltd. (TSX: PPY) – $7.26
Oil & Gas Exploration and Production
Painted Pony Petroleum Ltd. is a natural gas company in Western Canada. It is focused on the development of natural gas and natural gas liquids from the Montney formation in northeast British Columbia. It has approximately 220 net sections of working interest Montney rights, which contains over 300 meters (approximately 1,000 feet) of over-pressured, gas-saturated pay. Its Montney gas is used for liquefied natural gas (LNG) exports. It has over 110 million cubic feet per day (MMcf/d) of existing processing capacity, including working interest facilities at Townsend and West Blair; an operating working interest facility at Daiber, and capacity at third-party owned and operated facilities.
- Market Cap: $727 million
- Revenue (LTM): $71.4 million
- Debt to Equity (FY0): 9.5%
- Price to Book (FY0): 1.10x
Crew Energy Inc. (TSX: CR) – $5.83
Oil & Gas Exploration and Production
Crew Energy Inc. is an oil and gas exploration, development and production company that conducts its operations in the Western Canadian Sedimentary basin, primarily in the provinces of Alberta, British Columbia and Saskatchewan. Its activities are primarily focused in the vast Montney resource situated in northeast British Columbia. The Company’s Montney area assets include Septimus/West Septimus, Tower, Groundbirch, Attachie and Portage and are situated south and west of Fort St. John, British Columbia. Its operations include liquids rich natural gas and light oil production from the siltstone Montney formation.
- Market Cap: $855 million
- Revenue (LTM): $153.3 million
- Debt to Equity (FY0): 26.9%
- Price to Book (FY0): 0.99x
Advantage Oil & Gas Ltd (TSX: AAV) – $8.44
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. The Glacier property lies along the Alberta side of the border with British Columbia between Grande Prairie, Alberta and Dawson Creek, British Columbia.
- Market Cap: $1,554.72 million
- Revenue (LTM): $128.3 million
- Debt to Equity (FY0): 25.5%
- Price to Book (FY0): 1.28x
Birchcliff Energy Ltd. (TSX: BIR) – $7.58
Oil & Gas Exploration and Production
Birchcliff Energy Ltd. is an intermediate oil and natural gas company engaged in the exploration for and the development, production and acquisition of petroleum and natural gas reserves in Western Canada. Its operations are concentrated within core area, the Peace River Arch, which is centered over 90 kilometers northwest of Grande Prairie, Alberta, adjacent to the Alberta/British Columbia border. It is focused on over two established resource plays within the Peace River Arch: the Montney/Doig Natural Gas Resource Play and the Charlie Lake Light Oil Resource Play.
- Market Cap: $2,020.72 million
- Revenue (LTM): $274.12 million
- Debt to Equity (FY0): 56.6%
- Price to Book (FY0): 1.06x
Storm Resources Ltd. (TSXV: SRX) – $4.39
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’s 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. Umbach produces natural gas and associated natural gas liquids, while HRB produces dry natural gas. The Company’s land position at Umbach totals approximately 109,000 net acres, including over 150 net sections.
- Market Cap: $533.6 million
- Revenue (LTM): $64.6 million
- Debt to Equity (FY0): 16.2%
- Price to Book (FY0): 1.14x
