These 5 TSX Oil Stocks Are Trading Well Below Their Intrinsic Value
Oil prices have taken a hit this past week following an OPEC led decision to extend production cuts. OPEC and other producers pledged to extend a production cut of ~1.8 million barrels per day until the end of Q1/2018. Furthermore, many traders, including Goldman Sachs, have a bearish view on the commodity, claiming that oil could slump into 2018. Nonetheless, if you are a long-term investor with the view that OPEC’s production cuts will eventually satisfy the market, it is worthwhile to look at these five TSX oil stocks and related companies.
Written by SmallcapPower.com
The companies we have identified below are all trading well below their intrinsic value, according to data from Thomson Reuters. The price to intrinsic value rank is based on models from Thomson Reuters, with 100 representing the best possible value and 1 representing the worst. All figures are in Canadian dollars.
1. High Arctic Energy Services Inc. (TSX: HWO)
Oil Related Services and Equipment
High Arctic Energy Services Inc. is a Canada-based company, which focuses on providing contract drilling, completion services, equipment rental and other oilfield services to the oil and gas industry. The Company operates through providing oilfield services to customers in Canada and Papua New Guinea (PNG) segment. In PNG, the product line consists of contract drilling services, work-over services and equipment rental including rig mats, cranes and oilfield related equipment. In Canada, the product line consists primarily of snubbing services and the supply of Cryogenic Liquid Nitrogen Pumping Services and equipment rentals...
- Market Cap: $274,749,561
- Total Revenue (LTM): $208,000,000
- Debt to Equity: 11.2%
- YTD Price Change: -2.6%
- Price to Intrinsic Value Rank: 100
2. TerraVest Capital Inc. (TSX: TVK)
Oil Related Services and Equipment
TerraVest Capital Inc. is a Canada-based holding company...Its Fuel Containment segment is a manufacturer of items such as propane vessels, pressure vessels, commercial and residential liquid containment units, as well as bulk propane trucks (which are primarily steel-based) for the North American market. Through its Fabrication segment, it fabricates oil and gas wellhead processing equipment, through its subsidiaries...for the oil and natural gas industry in North America...
- Market Cap: $171,729,632
- Total Revenue (LTM): $178,513,000
- Debt to Equity: 60.1%
- YTD Price Change: 5.2%
- Price to Intrinsic Value Rank: 94
3. Painted Pony Energy Ltd. (TSX: PONY)
Oil Related Services and Equipment
Painted Pony Energy Ltd, formerly Painted Pony Petroleum Ltd, is a Canada-based natural gas company...focused on the development of natural gas and natural gas liquids from the Montney formation in Northeast British Columbia...for liquefied natural gas (LNG) exports...
- Market Cap: $851,558,443
- Total Revenue (LTM): $63,156,000
- Debt to Equity: 89.8%
- YTD Price Change: -43.0%
- Price to Intrinsic Value Rank: 91
4. Canacol Energy Ltd. (TSX: CNE)
Oil & Gas Exploration and Production
Canacol Energy Ltd. is a Canada-based oil and gas exploration and production company engaged in petroleum and natural gas exploration and development activities in Colombia and Ecuador...Its production primarily consists of natural gas from its Nelson, Palmer and Clarinete fields in the Lower Magdalena Basin in Colombia; crude oil from its Leono, Labrador, Pantro, Tigro and Maltes fields in the Llanos Basin in Colombia, and tariff oil from the Ecuador IPC...
- Market Cap: $703,142,241
- Total Revenue (LTM): $198,743,855
- Debt to Equity: 75.5%
- YTD Price Change: -12.4%
- Price to Intrinsic Value Rank: 87
5. Granite Oil Corp. (TSX: GXO)
Oil & Gas Exploration and Production
Granite Oil Corp., formerly DeeThree Exploration Ltd., is a Canada-based oil producer based in Calgary, Alberta with lands and operations located in southern Alberta...approximately 70 kilometers south of Lethbridge...
- Market Cap: $170,922,283
- Total Revenue (LTM): $33,636,000
- Debt to Equity: 13.0%
- YTD Price Change: -13.9%
- Price to Intrinsic Value Rank: 84
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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