Topic: How To Invest

Pat: What is your opinion on DeeThree Exploration Ltd.? Thanks.

Article Excerpt

DeeThree Exploration Ltd., $11.00, symbol DTX on Toronto (Shares outstanding: 88.7 million; Market cap: $959.4 million; www.deethree.ca), produces oil and natural gas in Western Canada. It also acquires and develops oil and gas properties. The company mainly focuses on the Brazeau Belly River and Alberta Bakken areas. In the three months ended March 31, 2014, DeeThree produced 9,372 barrels of oil equivalent a day, up 58.2% from 5,926 barrels a year earlier. Its cash flow per share jumped to $0.43 from $0.23. The company’s total debt of $108.2 million is just 11.3% of its $959.4-million market cap. That low debt, plus DeeThree’s rising cash flow and the proceeds of a recent $73.4-million share issue, gives the company plenty of flexibility to keep drilling and increasing its output. The stock trades at 5.2 times DeeThree’s forecast 2014 cash flow of $2.11 a share. DeeThree Exploration is okay for aggressive investors to hold. hold. …