Q: What is your take on this small resource company hitting new highs as we speak?
Thnx 5i
Dave
Thnx 5i
Dave
5i Research Answer:
Saturn Oil and Gas has had a nice run on higher oil prices. Recent earnings looked good with higher cash flows than expected and better production rates. The company is focused on the Western Canada region and it is cheap on an EV/EBITDA basis at 4.5X. The company has a bit of debt and no cash on the balance sheet but cash flows are strong and they are repurchasing shares and paying down debt.