Topic: How To Invest

Power Growth Investor Hotline – Friday, November 22, 2019

Article Excerpt

DELPHI ENERGY CORP., $0.06, is now a sell. The company (symbol DEE on Toronto), explores for, develops and produces oil and natural gas. About 59% of its output is gas; the remaining 41% is oil. In the quarter ended September 30, 2019, Delphi’s cash flow per share jumped 83.3%, to $0.11 from $0.06 a year earlier. The rise came despite an 11.8% drop in production, to an average 8,386 barrels of oil equivalent per day from 9,514 barrels. Realized oil and gas prices were also significantly lower. The main reason for the increase was a one-time asset sale that was counted as revenue. Without that, cash flow fell by 16%. Delphi’s positive cash flow, while declining, is a plus for investors. But the company’s debt is a major risk factor. Its $171.3 million in long-term debt is a very high 15.4 times its currently depressed market cap of $11.1 million. The company has now undertaken a number of measures to extend repayment deadlines for…