These Oil Stocks Are Taking It on the Chin as Crude Oil Breaks the Psychological $50 Level
SmallCapPower | March 17, 2017: Over the past month, crude oil has slipped over 10% amid concerns that oil stockpiles in the US were growing out of control and a surprise February output hike was reported by OPEC. As a result, oil has plunged to its lowest level in 2017 and oil stocks have sold off. Today, we examine those oil companies that are highly leveraged to debt as well as oil prices. As a contrarian investment, we examine those companies that were banking on crude staying well above that critical $50 mark to service their debt obligations and fuel their growth plans.
Eagle Energy Inc (TSX:EGL) – $0.49
Oil & Gas Exploration and Production
Eagle Energy Inc., formerly Eagle Energy Trust, is a Canada-based oil and gas company that owns petroleum producing properties with development and exploitation potential in Alberta, Texas and Oklahoma. Its subsidiary, Eagle Hydrocarbons Inc. (Eagle US), has oil and natural gas interests in Salt Flat Properties and a working interest in eight producing natural gas wells in Palo Pinto County, Texas. The Company also has a non-operated working interest in a producing petroleum property in northern Alberta.
- Market Cap: $20.5 million
- Revenue (FY0): 48.1 million
- Debt to Equity (FY0): 61.6%
- MTD Price PCT Change: -33.8%
Rooster Energy Ltd (TSXV:COQ) – $0.02
Oil & Gas Exploration and Production
Rooster Energy Ltd. is an independent company engaged in the acquisition, development and exploration of petroleum and natural gas, and the delivery of well intervention services, including well plugging and abandonment. The Company’s principal areas of operation are in the United States Gulf of Mexico. Its oil & gas production segment consists of approximately 20 gross wells.
- Market Cap: $3.9 million
- Revenue (FY0): $93.4 million
- Debt to Equity (FY0): 4,088.0%
- MTD Price PCT Change: -25.0%
Relentless Resources Ltd (TSXV:RRL) – $0.11
Oil & Gas Exploration and Production
Relentless Resources Ltd. is a Canada-based oil and natural gas exploration and production company with natural gas and light gravity crude oil assets in Alberta. The Company is engaged in the exploration, development, acquisition and production of natural gas and medium to light gravity crude oil reserves in Alberta. The Company controls a total land area of almost 60,000 acres in Alberta.
- Market Cap: $9.7 million
- Revenue (FY0): 3.2 million
- Debt to Equity (FY0): 100.4%
- MTD Price PCT Change: -21.4%
Hemisphere Energy Corp (TSXV:HME) – $0.24
Oil & Gas Exploration and Production
Hemisphere Energy Corporation produces oil and natural gas from its Jenner and Atlee Buffalo properties in southeast Alberta. The Company’s principal business is the acquisition, exploration, development and production of petroleum and natural gas interests in Canada. Its oil and gas properties are located in Alberta and British Columbia. The property has eight oil pools and approximately 30 identified locations and two oil processing and water disposal facilities in Jenner, Alberta. The Company holds an interest in over 20,600 gross acres of undeveloped land in the Jenner area.
- Market Cap: $20.3 million
- Revenue (FY0): $9.0 million
- Debt to Equity (FY0): 47.7%
- MTD Price PCT Change: -20.0%
Trilogy Energy Corp (TSX:TET) – $4.68
Oil & Gas Exploration and Production
Trilogy Energy Corp. is a Canada-based petroleum and natural gas-focused energy company that acquires, develops, produces and sells natural gas, crude oil and natural gas liquids in Alberta. Its properties include Kaybob Montney Oil Pool Development, Presley Montney Gas Development, Duvernay Shale Oil and Gas Development, Gething Oil Development and Dunvegan Oil Play. The Company’s annual production from the Kaybob area is approximately 26,190 barrels of oil equivalent per day (Boe/d). The Company’s annual production from the Grande Prairie area is approximately 1,580 Boe/d. Its undeveloped land base consists of approximately 525,280 gross acres of undeveloped lands, with multi-zone development potential. The Company’s subsidiary is Trilogy Resources Ltd.
- Market Cap: $492.8 million
- Revenue (FY0): 182.6 million
- Debt to Equity (FY0): 154.4%
- MTD Price PCT Change: -18.2%
