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The Year of Tourmaline

Also: Painted Pony continues to look good

When he was younger, Max Fawcett wanted to make a mint in the markets. Now as the managing editor of Alberta Venture he gets to write about them. Close enough, right? He can be reached at mfawcett@albertaventure.com

Mar 22, 2013

by Max Fawcett

FirstEnergy analysts were unusually ebullient in summarizing Tourmaline’s 2012 year-end operating results, describing theirs as “one of the most impressive years we have observed in Canadian exploration and production.” They’re not exaggerating, either, as the company posted 48 per cent year-over-year growth per share in its proved and probable reserves, along with a $10 per barrel FD&A metric (translation: its cost of finding and developing a resource). That, according to FirstEnergy’s Robert Fitzmartyn, “is reflective of management’s acumen for efficient deployment of capital.”

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Its outlook is equally impressive. FirstEnergy expects the company to “far exceed” its previous estimates for its 2014 production, and now forecasts that it will surpass the 100,000 boe/d level – a near 100 per cent increase when compared to its 2012 production. As a result, they have a $55 price target on its shares – they currently trade around $38 – and a top pick ranking. Painted Pony Petroleum, another FirstEnergy favourite (and, let’s face it, they’re not alone), maintained its top pick status and premium valuation ($17 target versus current price of just under $10) after the release of its 2012 year-end results.

 

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