Q: 5i last looked at this company in late 2023 when it was Pieridae Energy PEA:CA. This spring it changed its name to Cavvy Energy CVVY:CA. Please advise how it is doing. Also, what is the the split between being a midstream vs gas production company.
Thanks for your great service.
Cyril
Thanks for your great service.
Cyril
5i Research Answer:
Midstream is 30% but growing fast; Upstream (producing is 70%). But a year from now this will likelu be 45/55. The stock has done very well, up 206% in the past year. Debt remains quite high (more than 5X cash flow) but growth is high (processing volumes up more than 100% in Q2). It has no analysts and thus we have no forecasts, but the last quarter was good. There has been a bit of insider buying. Considering this was such a small company a year ago we do not know it as well as others. Considering its size and debt it is hard to give it a strong endorsement, and we might let shares consolidate their big gains for a period of time.