Checking for Ideas in the Data Table
The data table now has 44 companies with reserve and net asset values tabulated so lets see what we can glean from this nice collection of data. If you need a quick refresher on the reserve categories try the page on Reserve Reports and read forward. There is also a summary on the bottom of the Data Table page.
Summary Chart Upside to Proved
The first chart to look at is upside to Proved value to look for the most undervalued companies.
Upside to Proved Valuation
From this chart you can see that Bankers Petroleum(bnk), Bonavista Petroleum(bnp), Northern Blizzard(nbz), Boulder Energy(bxo) and Transglobe(tgl) fill out the top 5 when looking at this metric. Now let’s look at the more optimistic number upside to Proved plus Probable.
Most Undervalued Companies Proved + Probable
Upside Value to Proved plus Probable
Three of the companies are the same, Bankers Petroleum(bnk), Bonavista Petroleum(bnp), Northern Blizzard(nbz), but now we add Painted Pony(ppy), and Pengrowth(pgf). In this case the reserve engineers feel that the upside in the last two companies is there, even though there is less confidence in the values. My preference right now is to use the Proved upside since there is concern about downward adjustment to the reserve values with the new end of the year 2015 reserve reports. Now let’s look at the companies that have low Debt/Cash flow. This is staying true to the goal of finding companies with staying power to weather a prolonged downturn into 2017.
Companies with Low Debt/Cash Flow
Debt to Cash Flow
Transglobe, Prairie Sky, and Banker Petroleum have net cash on the balance sheet. The next two Raging River and Cenovus have low debt to cash flow that give them the ability to manage their business during the downturn.
So there you have it some ways to use the data table to look at stocks that would be of interest for further research. Since there is time to select some stocks and monitor them during this downturn it may be prudent to wait for the new 2015 yearend reserve report to better gauge value in the industry. As always consult a qualified financial advisor before you purchase a stock and read the disclaimer about this site.
