Topic: How To Invest

Stock Pickers Digest Hotline – Friday, December 9, 2016

Article Excerpt

TRILOGY ENERGY INC., $6.96, symbol TET on Toronto, owns oil and gas properties in the Kaybob area of west-central Alberta. About 71% of the company’s production is natural gas. The remaining 29% is oil. In the three months ended September 30, 2016, Trilogy produced 21,632 barrels of oil equivalent per day (including gas). That’s down 13.8% from 25,090 barrels a year earlier. While waiting for oil and gas prices to recover, the company made deep cuts to its exploration and development spending for 2015. Trilogy spent $81 million that year, down sharply from $427 million in 2014. Spending remained low for 2016: the company likely spent just $70 million this year. For the quarter, reduced output—combined with lower gas prices—cut cash flow per share by 27.7%, to $0.13 from $0.18 a year earlier. Trilogy ended the quarter with long-term debt of $548.8 million, or a high 61% of its $901.6 million market cap. The company’s long-term outlook is positive, mainly because it holds high-quality exploration…