A lot of times, people will look at cash flow per share as a financial benchmark, but in the oil and gas industry, if you use barrels of oil equivalent per day (BOED), or even better barrels of oil equivalent (BOE), then you get a better gauge of a companies overall financial health.
The follow information shows the cash flow per BOED and BOE for some select Junior and Intermediate companies:
| Company | Size | Cash Flow | Cash flow/ Share | Cash flow/ BOED | Cash flow Per BOE |
| CrescentPoint | Intermediate | $137,960,000 | $0.92 | $3,339 | $36.29 |
| ParamountEng | Intermediate | $88,718,000 | $0.78 | $3,216 | $34.96 |
| Freehold | Junior | $21,884,000 | $0.44 | $3,000 | $32.97 |
| West | Junior | $12,063,000 | $0.15 | $2,948 | $32.40 |
| Peyto | Intermediate | $46,063,000 | $0.43 | $2,562 | $27.84 |
| Fairborne | Intermediate | $35,742,000 | $0.41 | $2,335 | $25.38 |
| NAL | Intermediate | $52,972,000 | $0.52 | $2,298 | $24.98 |
| Zargon | Junior | $21,325,000 | $0.92 | $2,240 | $24.62 |
| Baytex | Intermediate | $86,661,000 | $0.82 | $2,146 | $23.32 |
| Enerplus | Intermediate | $199,815,000 | $1.18 | $2,114 | $22.98 |
| Daylight | Intermediate | $48,459,000 | $0.45 | $2,103 | $22.85 |
| Culane | Junior | $3,032,000 | $0.13 | $2,049 | $22.51 |
| Bonterra | Junior | $9,780,000 | $0.55 | $1,951 | $21.43 |
| Bonavista | Intermediate | $101,655,000 | $0.85 | $1,964 | $21.34 |
| Pengrowth | Intermediate | $160,095,000 | $0.62 | $1,948 | $21.18 |
| ARC | Intermediate | $120,500,000 | $0.51 | $1,884 | $20.48 |
| Galleon | Intermediate | $29,605,000 | $0.39 | $1,842 | $20.02 |
| Delphi | Junior | $12,371,000 | $0.16 | $1,817 | $19.97 |
| Arcan | Junior | $2,764,000 | $0.07 | $1,815 | $19.94 |
| Celtic | Intermediate | $20,008,000 | $0.46 | $1,834 | $19.94 |
| Birchcliff | Intermediate | $20,026,000 | $0.18 | $1,770 | $19.24 |
| EagleRock | Junior | $916,000 | $0.02 | $1,738 | $19.10 |
| Fairwest | Junior | $1,388,000 | $0.01 | $1,716 | $18.85 |
| Advantage | Intermediate | $51,590,000 | $0.36 | $1,662 | $18.06 |
| NuVista | Intermediate | $41,779,000 | $0.53 | $1,621 | $17.62 |
| Rock | Junior | $5,195,000 | $0.20 | $1,561 | $17.15 |
| BlackPearl | Junior | $8,013,000 | $0.03 | $1,550 | $17.03 |
| Seaview | Junior | $3,076,000 | $0.05 | $1,489 | $16.36 |
| Stonefire | Junior | $2,037,000 | $0.08 | $1,488 | $16.35 |
| Crew | Intermediate | $20,036,000 | $0.27 | $1,488 | $16.17 |
| Zapata | Junior | $3,853,000 | $0.23 | $1,461 | $16.05 |
| Painted Pony | Junior | $1,826,000 | $0.06 | $1,391 | $15.28 |
| Diaz | Junior | $822,000 | $0.01 | $1,218 | $13.38 |
| NuLoch | Junior | $601,000 | $0.02 | $1,185 | $13.03 |
| Angle | Junior | $8,539,000 | $0.21 | $1,143 | $12.56 |
| Great Plains | Junior | $1,486,000 | $0.02 | $1,142 | $12.55 |
| Open Range | Junior | $2,508,000 | $0.09 | $1,117 | $12.28 |
| TRUE | Junior | $10,765,000 | $0.14 | $1,102 | $12.11 |
| Trilogy | Intermediate | $21,857,000 | $0.22 | $1,104 | $12.00 |
| Breaker | Junior | $7,493,000 | $0.16 | $1,064 | $11.70 |
| Storm | Junior | $8,460,000 | $0.18 | $1,038 | $11.40 |
| Buffalo | Junior | $2,743,000 | $0.04 | $1,011 | $11.11 |
| Cequence | Junior | $1,541,000 | $0.04 | $995 | $10.94 |
| Cinch | Junior | $2,569,000 | $0.05 | $982 | $10.79 |
| Redcliffe | Junior | $747,000 | $0.01 | $944 | $10.38 |
| Twin Butte | Junior | $2,691,000 | $0.06 | $940 | $10.33 |
| Crocotta | Junior | $1,884,000 | $0.04 | $939 | $10.32 |
| Midnight | Junior | $2,054,000 | $0.04 | $938 | $10.31 |
| ProspEx | Junior | $2,864,000 | $0.05 | $927 | $10.19 |
| Wrangler West | Junior | $1,034,000 | $0.16 | $926 | $10.17 |
| Berens | Junior | $3,866,000 | $0.04 | $925 | $10.16 |
| Yoho | Junior | $2,475,000 | $0.12 | $923 | $10.14 |
| Terra | Junior | $4,930,000 | $0.07 | $911 | $10.01 |
| Arsenal | Junior | $2,032,000 | $0.02 | $909 | $9.99 |
| ParamountRes | Intermediate | $12,236,000 | $0.19 | $916 | $9.95 |
| Questerre | Junior | $717,000 | $0.004 | $890 | $9.78 |
| Progress | Intermediate | $29,619,000 | $0.18 | $876 | $9.52 |
| Anderson | Junior | $6,692,000 | $0.06 | $859 | $9.44 |
| Enterra | Intermediate | $8,561,000 | $0.14 | $851 | $9.25 |
| Vero | Junior | $5,767,000 | $0.15 | $819 | $9.00 |
| Petro-Reef | Junior | $619,000 | $0.02 | $731 | $8.03 |
| Ironhorse | Junior | $877,000 | $0.04 | $717 | $7.88 |
| Midway | Junior | $673,000 | $0.05 | $687 | $7.55 |
| Intl Sovereign | Junior | $593,000 | $0.04 | $622 | $6.83 |
| Orleans | Junior | $2,326,000 | $0.04 | $604 | $6.64 |
| Sure | Junior | $372,000 | $0.01 | $570 | $6.26 |
| Bellamont | Junior | $394,000 | $0.01 | $454 | $4.99 |
| Triton | Junior | $420,000 | $0.01 | $447 | $4.92 |
| Fortress | Junior | $557,000 | $0.02 | $435 | $4.79 |
| Compton | Intermediate | $9,214,000 | $0.07 | $430 | $4.67 |
| Twoco | Junior | $511,000 | $0.03 | $403 | $4.43 |
| Monterey | Junior | $844,000 | $0.03 | $362 | $3.98 |
| Insignia | Junior | $273,000 | $0.02 | $353 | $3.88 |
| Canext | Junior | $347,000 | $0.004 | $349 | $3.83 |
| Iteration | Intermediate | $5,464,000 | $0.03 | $319 | $3.47 |
| DeeThree | Junior | $95,000 | $0.01 | $176 | $1.93 |
| Canadian Phoenix | Junior | $149,000 | $0.0001 | $169 | $1.86 |
| Argosy | Junior | $78,000 | $0.01 | $83 | $0.92 |
| Second Wave | Junior | $(26,000) | $(0.001) | $(26) | $(0.29) |
| Result | Junior | $(32,000) | $(0.0004) | $(52) | $(0.57) |
| Dejour | Junior | $(243,000) | $(0.003) | $(439) | $(4.82) |
| One | Junior | $(355,000) | $(0.01) | $(529) | $(5.81) |
| Action | Junior | $(855,000) | $(0.01) | $(880) | $(9.67) |
| Average | $18,687,410 | $0.19 | $1,180 | $12.91 |
If you look at the low end of the cash flow per BOE, you will notice that one company, Action Energy, has been put into CCAA and most of their assets have been sold off and Result Energy was just recapitalized taken over by the former management team of Tristar Oil and Gas (watch Result Energy, this team has done wonders in the past).
On the upper end, it is good to see that there is a mix of intermediates and juniors, but heavily weighted to the intermediates. Towards the lower end, you see mostly the juniors.
It looks as if a lot of these companies still have pretty decent cash flow, even if we are in a period where gas prices are low. In the long run though, companies are going to have to look at ways to reduce their operating costs, particularly on the natural gas side of their business, to keep their cash flow strong.
These opinions are mine and may not reflect your view. If you would like to contact me, then please feel free to do so at info@argentis-group.com. Argentis Group assists oil and gas companies with operational audits to identify areas to reduce costs, increase revenues and increase the overall asset value of an oil and gas company
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