Q: Please comment on Saturn's latest (Q2) results and if it is a buy at current price.
5i Research Answer:
Production more than tripled to 26,000 b/d. Net backs rose from $29.91/b to $41.87/b. EBITDA more than quadrupled to $92.9M. Per share cash flow was 48c, up from 45c. Net debt is still a bit high at 1.9X cash flow. But, operationally (the thing it can control) SOIL is doing very well, and high growth is offsetting lower commodity prices. It is a very cheap stock based on cash flow. We would consider it a BUY within the context of the small cap energy sector.