The Canadian oil stocks on our list have some of the highest free cash flow per share yields in the sector
SmallCapPower | October 19, 2017: As oil prices continue their upwards momentum amidst OPEC production cuts, political turmoil in Iraq and potential economic sanctions on Iran, we look at some Canadian oil companies that generate Free Cash Flow (FCF) in the current environment. Today we have identified four Canadian oil stocks that have some of the highest Free Cash Flow per share yields in the sector. FCF represents the cash generated after paying for capital expenditures.
Bonterra Energy Corp. (TSX:BNE) – $14.07
Oil & Gas Exploration and Production
Bonterra Energy Corp is an oil & gas company based in Calgary. The majority of Bonterra’s asset base is located across Western Canada. The Company’s main assets include Pembina and Willesden Green Area, Shaunavon Area and Prespatou Area. The Company’s properties yield average production of ~13,000 boe/d. Furthermore, the stock pays monthly dividends to investors at an annual yield of 8.5% (based on a price of $14.07).
- Market Cap: $469 Million
- Free Cash Flow Per Share Yield: 22.2%
- Net Income After Taxes (LFY): $ -24 Million
Canacol Energy Ltd. (TSX:CNE) – $4.06
Oil & Gas Exploration and Production
Formed in 2008, Canacol Energy is a Canada-based oil & gas company with operations in Columbia and Ecuador. The Company is currently focused on ramping up gas production in Columbia. Canacol is currently developing the $40 million Sabanas pipeline, which will help the Company achieve its production target of ~19,000 boe/d. In Ecuador, the Company has established a Joint Venture with a consortium of companies, which was awarded a 15-year production contract by the national oil company of Ecuador.
- Market Cap: $714 Million
- Free Cash Flow Per Share Yield: 17.5%
- Net Income After Taxes (LFY): $31 Million
Kelt Exploration Ltd. (TSX:KEL) – $6.67
Oil & Gas Exploration and Production
Kelt Exploration Ltd. is an oil & gas company based in Calgary, Alberta. The Company is focused on the exploration, development and production of crude oil and natural gas resources, primarily in Alberta and British Columbia. The Company’s main land holdings are in two core areas; Grand Prairie (including Pouce Coupe, Progress, La Glace and Pipestone/Wembley), Alberta and Fort St. John (including Inga/Fireweed, British Columbia. Kelt plans to produce 22,500 boe/d during 2017.
- Market Cap: $1,174 Million
- Free Cash Flow Per Share Yield: 17.2%
- Net Income After Taxes (LFY): $ -50 Million
TransGlobe Energy Corp. (TSX:TGL) – $1.99
Oil & Gas Exploration and Production
TransGlobe Energy Corporation is a Canada-based oil exploration and production company. The Company’s activities are concentrated in Canada and Egypt. The Company’s Canadian assets are located in the Harmattan area in Central Alberta, 80 kilometers north of Calgary. In Egypt, the Company has 100% working interests in six concessions. In total, the Company’s properties in Egypt comprise 1.07 million acres of land.
- Market Cap: $144 Million
- Free Cash Flow Per Share Yield: 9.4%
- Net Income After Taxes (LFY): $ -118 Million
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in any of the companies mentioned above.
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