Q: I think questions about SCORE (SCR) are dragging Strathcona Resources (SCR) into the discussion. While owning an oil company might be a form of gambling I believe this is in error.
I would be interested in your opinion of the Oil Company, SCR - Strathcona Resources.
I would be interested in your opinion of the Oil Company, SCR - Strathcona Resources.
5i Research Answer:
Thanks, the old ticker for Score has now been picked up and used by Strathcona.
Strathcona (SCR) is a high yielding energy name trading at a 5X forward P/E with positive operating cash flows. The balance sheet looks fine with debt on the balance sheet but cash flows to help support it and in the current state, the distributions should not be a problem. It went public very recently through a takeover of Pipestone Energy. Like most energy names, success will depend to some degree on oil prices/sentiment and with less of a history operating as a public company, risks are a bit higher here. Overall though, we don't see a whole lot to be too critical of at this stage but would prefer to see a few quarters of operations under their belt.