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Topic: Energy Stocks

Big production jump pushed up this natural gas stock’s cash flow

Trilogy Energy Corp., symbol TET on Toronto, owns oil and gas properties in the Kaybob and Grande Prairie areas of central Alberta. About 76% of Trilogy’s production is natural gas. The remaining 24% is oil.

Trilogy is one of the natural gas stocks we analyze in Stock Pickers Digest, our newsletter that recommends investments that may be appropriate for the part of your portfolio you devote to aggressive investing.

In the three months ended June 30, 2011, Trilogy produced an average of 29,320 barrels of oil equivalent per day (including natural gas). That was up 21.7% from 24,087 barrels a day a year earlier. Trilogy’s daily production should jump to an average of 30,000 barrels for all of 2011.

The natural gas stock’s cash flow per share rose 51.7%, to $0.44 from $0.29 a year earlier. That was mostly because of the higher production, as well as rising oil prices.

The natural gas stock’s long-term debt is now $386.6 million. That’s a low 11.9% of its market cap.

Trilogy is a dividend paying stock. Its annual rate of $0.42 a share yields 1.7%.

We updated our advice on Trilogy and four other aggressive stocks in our August 5, 2011, Stock Pickers Digest hotline, which you can immediately view when you take a 1-month free trial to Stock Pickers Digest. Click here to get started right away.

(Note: If you are a current Stock Pickers Digest subscriber, please click here to view Pat’s recommendation. Be sure to log in first.)

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