- Corridor’s natural gas business in New Brunswick will be profitable, despite the moratorium.
- The company has a pristine balance sheet, with no debt and over $23M in cash.
- It has a quick ratio of over 29, which indicates absolutely no financial pressure in the short term.
- The market is completely ignoring the tremendous Old Harry and Anticosti Island prospects.
- The net present value of the company is $4.95 per share.
- Alfa and Harbour are buying it a little over the fair price of the company.
- Don’t expect Alfa and Harbour to break the bank if the vote fails.
- Astonishing netback of $9 per barrel for a realized price of $47 per barrel.
- Strong balance sheet is perfect for future acquisitions to boost operations in Egypt.
- The oil lifting capabilities of the company will be very beneficial to shareholders.
- The model is realistic according to the first quarter results.
- The market fairly thinks that the offer presented will be rejected by shareholders.
- The current offer will be edged higher or the other group of investors will themselves present an offer.
- The price of natural gas will rise according to AECO futures.
- The company will break-even under current market conditions.
- The business model developed by the management team will thrive in the current environment.
- Substantial acres in Alberta in both the oil sands and light oil.
- Focusing on more profitable light oil properties for a self-funded business in the medium-term.
- Very good balance sheet in the short-term and lots of funding available.
- When the value of the properties unlocked, finding a partner to develop the massive acreage will be easier.
- Speculation ended last night as Pacific Rubiales is being bought at around $6 CAD per share.
- This offer is at the low end of the valuation I discussed in my previous article.
- With the oil market slowly recovering, I would expect better returns holding on to the stock for the longer term instead of letting go at this price.
TransGlobe Energy had a great run in the past month, following my articles on Seeking Alpha. However, on a technical point of view, you should expect a short-term pullback. As such, I believe it is time to sell the stock and buy it back in the short-term afterwards.
Indeed, it seems that the stock couldn’t break the C$5.40 mark. Furthermore, the MACD is about to cross downward. The stock might test the 200-day moving average again in the short-term.
Disclosure: I am long TGL.
- PRE is undervalued compared to its peers.
- The shares are worth over $6.50 based on the net oil reserves of the company.
- The shares are worth over $25.50 based on the net oil production of the company.
- Oil sales from the first quarter will be around $786MM.
- PRE will have a positive cash balance for the first quarter on lower capital expenditures.
- There won’t be any debt maturing before the fourth quarter of 2016 with the new debt profile of the company.
- PRE will increase its cash position by taking on more debt.