Promising drilling prospects add appeal

Article Excerpt

DELPHI ENERGY $2.18 (Toronto symbol DEE; TSI Network Rating: Speculative) (403-265-6171;; Shares outstanding: 119.7 million; Market cap: $250.3 million; No dividends paid) explores for oil and natural gas in Alberta, Saskatchewan and B.C. Gas makes up 70% of Delphi’s daily output; the remaining 30% is oil. In the three months ended June 30, 2011, Delphi’s average daily output rose 10.8%, to a record 8,906 barrels of oil equivalent (including natural gas) from 8,035 barrels a year earlier. The higher production pushed up Delphi’s cash flow by 40.1%, to $17.5 million from $12.5 million. Cash flow per share rose 25%, to $0.15 from $0.12, on more shares outstanding. Delphi continues to acquire undeveloped land. It now owns over 244,000 acres, up 42% from a year ago. Its large landholdings continue to give it lots of drilling targets to increase its output and reserves. The company’s $116.5 million of debt is a manageable 46.5% of its market cap. Delphi trades at only 3.6 times its…

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