Back in a Bubble - Domestic Intermediate Oil and Gas Producers 3
Introduction...........................................................................................................................................................................................................5
Diminishing Returns .......................................................................................................................................................................................... 6
Back to the Future............................................................................................................................................................................................. 9
Challenging Economics ................................................................................................................................................................................... 11
Making Sense of Intermediate Producers................................................................................................................................................ 13
Initiating Coverage..........................................................................................................................................................................................20
Celtic Exploration (CLT-TSX); Cost-conscious gas producer will survive if not thrive 23
Executive Summary ........................................................................................................................................................................................23
Management and Directors..........................................................................................................................................................................24
Properties............................................................................................................................................................................................................24
Capitalization..................................................................................................................................................................................................... 27
Valuation .............................................................................................................................................................................................................28
Compton Petroleum (CMT-TSX, CMZ-NYSE); New management looking to restructure the balance sheet 30
Executive Summary ........................................................................................................................................................................................30
Management and Directors........................................................................................................................................................................... 31
Properties............................................................................................................................................................................................................32
Capitalization.....................................................................................................................................................................................................34
Valuation .............................................................................................................................................................................................................35
Crew Energy (CR-TSX); Focus on Montney gas at Septimus, BC 37
Executive Summary ........................................................................................................................................................................................37
Management and Directors..........................................................................................................................................................................38
Properties............................................................................................................................................................................................................38
Capitalization......................................................................................................................................................................................................41
Valuation .............................................................................................................................................................................................................42
Highpine Oil and Gas (HPX–TSX); Oil-weighted producer struggling to grow 44
Executive Summary ........................................................................................................................................................................................44
Management and Directors..........................................................................................................................................................................45
Properties............................................................................................................................................................................................................45
Capitalization.....................................................................................................................................................................................................48
Valuation .............................................................................................................................................................................................................48
NuVista Energy (NVA-TSX); Low cost, acquisition-oriented company likes to grow opportunistically 51
Executive Summary ......................................................................................................................................................................................... 51
Management and Directors..........................................................................................................................................................................52
Properties............................................................................................................................................................................................................52
Capitalization.....................................................................................................................................................................................................54
Valuation .............................................................................................................................................................................................................55