Exploration prospects a plus for these two

Article Excerpt

DELPHI ENERGY $3.18 (Toronto symbol DEE; SI Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares outstanding: 101.2 million; Market cap: $321.8 million; No dividends paid) explores for oil and gas in Alberta and B.C. Natural gas makes up 83% of its daily output. In the three months ended September 30, 2009, Delphi’s average daily output rose 5.6%, to 6,773 barrels of oil equivalent (this measurement includes natural gas) from 6,409 barrels. Despite the higher production, Delphi’s cash flow per share fell 33.3%, to $0.16 from $0.24 a year earlier. That’s because of lower oil and natural-gas prices. Delphi now holds 172,209 acres of undeveloped land. That’s up 37.3% from 125,359 acres in 2008. That gives it lots of drilling targets to increase output. The company’s $96 million of debt is a manageable 30% of its market cap, and only 1.9 times its annualized cash flow (based on the latest quarter). The stock trades at only 6.0 times Delphi’s forecast 2009 cash flow of $0.53 a..