The Canadian oil and gas stocks on our list have increased their cash flow significantly during the past five years
SmallCapPower | September 14, 2018: Today we have identified four Canadian oil and gas stocks that have grown their operational cash flow by an average of 42% in the past five years. Whether it be from acquiring new production assets or cutting operational costs, these companies have demonstrated sustained growth, which have made them good bets for continued success in the future.
Storm Resources Ltd. (TSX:SRX) – $2.50
Oil & Gas Exploration and Production
Storm Resources is a production & exploration company with operations located at Umbach and the Horn River Basin in northeast British Colombia. The Umbach site covers 110,000 acres and is prospective for liquids-rich natural gas. The Horn River Basin property covers 80,000 acres but to date the property has one producing horizontal well. The Company’s production guidance for Q3/2018 is forecasted to be between 19,500 – 20,500 boed.
- Market Cap: $304.1 Million
- Cash Flow Growth Rate (5 Yrs): 64.5%
- 5 Year Average Cash Flow: $28.3M
- Price to Cash Flow (2018): 5.1x
Tamarack Valley Energy Ltd. (TSX:TVE) – $4.67
Oil & Gas Exploration and Production
Tamarack Valley Energy is a Canada-based oil and gas producer operating in Alberta and Saskatchewan. The Company’s flagship operation, the Viking project, is a heavy-oil field located east of Edmonton with a daily production of 12,163 boed. On August 9, 2018, Tamarack announced a record production quarter, resulting in an increased 2018 guidance of 24,000 boe/d (66% liquids), up from 23,500 boed in Q1.
- Market Cap: $1,060.7 Million
- Cash Flow Growth Rate (5 Yrs): 55.6%
- 5 Year Average Cash Flow : $55.4M
- Price to Cash Flow: 7.9x
Surge Energy Inc. (TSX:SGY) – $2.47
Oil & Gas Exploration and Production
Surge Energy is an oil-focused exploration and production company based in Canada. The Company has more than 700 drilling locations spread over Western Canada. Surge has three major operational zones called Western Alberta, South Eastern Alberta and Shaunavon, which expect to produce 16,580 boe/d in 2018. On September 5, 2018, Surge announced that they have entered into an agreement to acquire Mount Bastion Oil and Gas Corp (MBOG), a deal that will add more than 600 million barrels of net internally estimated light original oil.
- Market Cap: $569.3 Million
- Cash Flow Growth Rate (5 Yrs): 33.3%
- 5 Year Average Cash Flow : $49.1M
- Price to Cash Flow: 8.7x
Yangarra Resources Ltd. (TSX:YGR, OTC:YGRAF) – $4.14
Oil & Gas Exploration and Production
Yangarra is a Canadian oil and gas company with operations in Western Canada. Its primary assets are in central Alberta, where it focuses on the resource-rich Cardium formation. Currently, the Company has drilled a total of 42 bioturbated Cardium wells within this region. On August 8, 2018, Yangarra announced Q2/2018 average production of 7,570 boe/d (60% liquids), an increase of 33% from Q1/2018.
- Market Cap: $355.8 Million
- Cash Flow Growth Rate (5 Yrs): 17.8%
- 5 Year Average Cash Flow: $26.2M
- Price to Cash Flow: 8.2x
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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