The oil juniors on our list are likely to spring higher as the oil price rises to new 52-week highs
SmallCapPower | February 28, 2017: Oil is hitting new 52-week highs since falling to under US$30 a barrel a little less than a year ago. Investors and speculators are increasing their bullish bets on U.S. crude as OPEC has surprised the market with record output compliance of 90% in January. Similar compliance results are expected in February as the United Arab Emirates and Iraq have agreed to catch up with their targets. That being said, we have identified five oil juniors highly leveraged to crude oil, benefitting most from a continued rise in prices.
NuVista Energy Ltd. (TSX: NVA) – $5.99
Oil & Gas Exploration and Production
NuVista Energy Ltd. (NuVista) is an exploration and production company, which is engaged in exploration, development and production of oil and natural gas reserves in the Western Canadian Sedimentary Basin. The Company’s primary focus is on Montney formation in the Alberta Deep Basin (Wapiti Montney). The Company’s products include natural gas, and condensate and oil.
- Market Cap: $1,035 million
- EBITDA (LTM, CAD): $93,355,000
- Revenue (LTM, CAD): $236,157,000
- Total Debt (FQ0, CAD): $146,286,000
Cardinal Energy Ltd (TSX: CJ) – $8.28
Oil & Gas Exploration and Production
Cardinal Energy Ltd. is a Canada-based oil-focused company engaged in the acquisition, exploration and production of petroleum and natural gas in the provinces of Alberta and Saskatchewan. Its Wainwright properties are located approximately 200 kilometers southeast of Edmonton, Alberta. The Wainwright properties (including the Hayter asset) produce approximately 4,500 barrels of oil equivalent per day (Boe/d) of predominantly heavy crude oil and associated natural gas. Its Bantry property is located near the City of Brooks, Alberta. It produces medium crude oil, natural gas and natural gas liquids (NGLs). The Company produces approximately 4,400 boe/d at Bantry property.
- Market Cap: $613 million
- EBITDA (LTM, CAD): $16,436,000
- Revenue (LTM, CAD): $158,047,000
- Total Debt (FQ0, CAD): $69,233,000
TransGlobe Energy Corp (TSX: TGL) – $2.17
Oil & Gas Exploration and Production
TransGlobe Energy Corporation is an oil exploration and production company. Its activities are concentrated in the Arab Republic of Egypt (Egypt). The Company holds interests in various production sharing concessions (PSC) in Eastern Desert Egypt and Western Desert Egypt. Its blocks in Eastern Desert Egypt include West Gharib, which covers approximately 34,860 acres; West Bakr, covering over 11,600 acres; North West (NW) Gharib, covering approximately 162,000 acres; South East (SE) Gharib, which covers over 125,650 acres, and South West (SW) Gharib, covering approximately 48,310 acres.
- Market Cap: $157 million
- EBITDA (LTM, CAD): $5,713,975
- Revenue (LTM, CAD): $81,908,265
- Total Debt (FQ0, CAD): $26,330,137
Spartan Energy Corp (TSX: SPE) – $2.83
Oil & Gas Exploration and Production
Spartan Energy Corp, formerly Alexander Energy Ltd, is a Canada-based oil and natural gas exploration and production company with producing properties focused in Saskatchewan. The Company’s properties include Southeast Saskatchewan, West Central Saskatchewan and Alexander Alberta. The Company holds interest in Alexander property, which own three-dimensional (3D) seismic and all associated facilities.
- Market Cap: $1,488 million
- EBITDA (LTM, CAD)): $50,147,000
- Revenue (LTM, CAD): $129,144,000
- Total Debt (FQ0, CAD): $80,589,000
Sterling Resources Ltd. (TSXV: SLG) – $0.54
Oil & Gas Exploration and Production
Sterling Resources Ltd. is a Canada-based energy company engaged in the acquisition of petroleum and natural gas rights, and the exploration for, and the development and production of, crude oil and natural gas. The Company’s geographical segments include Canada, United Kingdom and Other International. The United Kingdom and other international locations are involved in exploration and development operations. Other international comprises operations in France and the Netherlands. Its assets include Breagh and Cladhan. The Breagh field is located in the Southern North Sea, Block 42/13a approximately 100 kilometers offshore the English coast near Teesside. The Breagh field has over eight wells under production.
- Market Cap: $79 million
- EBITDA (LTM, CAD): $18,933,183
- Revenue (LTM, CAD): $64,909,902
- Total Debt (FQ0, CAD): $53,638,235
