New wells are raising their cash flow

Article Excerpt

DELPHI ENERGY $2.20 (Toronto symbol DEE; TSI Network Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares outstanding: 119.2 million; Market cap: $262.2 million; No dividends paid) explores for oil and natural gas in Alberta and B.C. The company is now focusing on its Bigstone, Hythe and Wapiti/Gold Creek properties in northwestern Alberta. Gas makes up 72% of Delphi’s daily output; the remaining 28% is oil. In the three months ended September 30, 2011, Delphi’s average daily output rose 10.5%, to a record 8,967 barrels of oil equivalent (including natural gas) from 8,114 barrels a year earlier. The higher production, as well as lower costs, pushed up the company’s cash flow by 14.8%, to $17.2 million from $15.0 million. Cash flow per share rose 15.4%, to $0.15 from $0.13, on fewer shares outstanding. Delphi continues to acquire undeveloped land to add to its drilling targets and increase its reserves. That includes increasing its holdings at Bigstone. To do that, it recently spent a further $10 million to $15…