Thanx Gary
PIPE is a small-cap oil-producing company that is now trading at 3.9x times' Forward P/E. Growth in the last five years was quite impressive as the company issued shares and invested in drilling. The balance sheet is strong, with net debt of $150M, and net debt/EBITDA is only 0.5x. The company experienced a significant tailwind in the last two years due to high oil prices. As a result, the company started repurchasing shares and paying dividends. However, PIPE’s main priority is still to reinvest back into drilling, which is fine but can add some cyclicality to the business, depending on commodity prices. The company’s valuation is cheap for sure, and we are okay with the name for a small cap sector investment. The float is very tight with insiders and four funds owning a collective 67%. It has only paid two dividends and only became profitable in the past few years.