Should the oil price continue its appreciation in 2017, so should the value of the levered TSX energy stocks on our list
SmallCapPower | January 5, 2017: The New Year likely marks a significant time for the price environment of crude oil. The collaborative effort of OPEC producers to curb supply, paired with additional carbon pricing initiatives set out by various regulatory bodies (including Ontario and Alberta’s 2017 carbon pricing plans) are the two primary catalysts that are projected to stimulate energy prices. Due to these factors, we take a look at some TSX energy stocks that have the greatest leverage to a rising oil price.
Questerre Energy Corp. (TSE:QEC) – $0.87
Oil & Gas Exploration and Production
Questerre Energy Corporation is a Canada-based independent energy company focused on non-conventional oil and gas resources. The Company is developing a portfolio of oil shale assets. Questerre has base production and reserves in the tight oil Bakken/Torquay of southeast Saskatchewan. Its principal operating areas include Kakwa-Resthaven, Alberta; Antler, Saskatchewan; Oil Shale Mining, and St. Lawrence Lowlands, Quebec. It holds approximately 19,040 acres in the Kakwa-Resthaven area.
- Market Cap: $265 million
- Revenues (LTM): $16.8 million
- Total Debt (LFQ): $18.9 million
- Price Change (since 08/01/16): +346%
Yangarra Resources Ltd. (TSE:YGR) – $1.92
Oil & Gas Exploration and Production
Yangarra Resources Ltd. is an exploration focused oil and natural gas company. The Company is engaged in production, exploration and development of resource properties in the Central Alberta, Medicine Hat and Jaslan areas of Alberta. It produces oil and gas assets of approximately 2,390 barrel of oil equivalent per day (boe/d) of oil, natural gas and natural gas liquids (NGLs). It holds working interests ranging in various sections in the Central Alberta Area with Glauconitic (over 47 gross (26 net) sections), Cardium (over 45 gross (33 net) sections), Viking, Second White Specs (over 45 gross (29 net) sections), Rock Creek and Ellerslie zones.
- Market Cap: $151 million
- Revenues (LTM): $23.4 million
- Total Debt (LFQ): $60.6 million
- Price Change (since 08/01/16): +88%
Gear Energy Ltd. (TSE:GXE) – $1.18
Oil & Gas Exploration and Production
Gear Energy Ltd. is a junior oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves in the Western Canadian Sedimentary Basin, with a focus on heavy oil. The Company’s oil and gas properties are located in Alberta, British Columbia and Saskatchewan. Its properties include Wildmere Lloyd and Maidstone.
- Market Cap: $225 million
- Revenues (LTM): $55.5 million
- Total Debt (LFQ): $46.1 million
- Price Change (since 08/01/16): +84%
Delphi Energy Corp. (TSE:DEE) – $1.69
Oil & Gas Exploration and Production
Delphi Energy Corp. (Delphi) is a Canada-based company engaged in the acquisition for and exploration, development and production of crude oil, natural gas and natural gas liquids in western Canada. The Company’s operations are principally concentrated in Northwest Alberta at Bigstone, which is in the Deep Basin of Northwest Alberta. The Bigstone property is located over 150 kilometers southeast of the city of Grande Prairie. Its production asset, which produces sweet natural gas from the shallower Cretaceous zones at Bigstone, contributes an average of approximately 1,100 barrels of oil equivalent per day (boe/d), with over 16% as oil and natural gas liquids.
- Market Cap: $263 million
- Revenues (LTM): $58.6 million
- Total Debt (LFQ): $112.3 million
- Price Change (since 08/01/16): +78%
Journey Energy Inc. (TSE:JOY) – $2.80
Oil & Gas Exploration and Production
Journey Energy Inc (Journey) is a Canada-based exploration and production company. The Company is engaged in the exploration, development and production of oil and natural gas in the Western Canada Sedimentary Basin. The Company is focused on conventional, oil-weighted operations in western Canada. Journey’s Central Region is located west of Edmonton. Journey’s South Region is located southeast of Calgary. The Company has drilled approximately 40 horizontal wells. The Company holds interests in approximately 300 oil pools along a prolific resource fairway. The Company is engaged in developing approximately five pools, and operating over eight water floods and a gas reinjection project. The Company is also involved in drilling its existing core lands, implementing water flood projects and executing on accretive acquisitions.
- Market Cap: $122 million
- Revenues (LTM): $78.0 million
- Total Debt (LFQ): $82.4 million
- Price Change (since 08/01/16): +67%
