Q3 2010 Updates: Perpetual Energy, Daylight Energy, Delphi Energy

Following quarterly releases by companies I am invested in, I will be updating their respective pages with the latest data and upcoming catalysts since I use these posts in my investment decisions. The information found under these stock picks was retrieved from the latest quarterly reports. If you identify any errors in the data please do not hesitate to contact me.

Click on the links to view the latest highlights.

Daylight Energy (TSE:DAY) Daylight is actively working on becoming a more focused company with an oilier asset based. DAY will continue its aggressive light oil development activity in Pembina with at least 10 additional horizontal Cardium wells expected to be drilled during Q4 of 2010. 2 net Cardium wells drilled in Q3 will also be completed and placed on production. In addition to the Cardium light oil program, DAY is targeting the Bluesky and Wilrich (liquid rich) in West Central and the Cadomin in Elmworth (liquid rich) which highlights the depth and quality of its inventory of resource-play opportunities in light oil, NGLs and natural gas.

Perpetual Energy(TSE:PMT) the expected dividend cut was finally announced by PMT bringing it down from 0.05 to 0.03. PMT still yields ~8% at this point. I have not sold 1 single share since the whole debacle began, I knew I was invested in an aggressive play here, the company is heavily weighted to natural gas and prices have been wiping the floor lately.

On a side note Sprott Asset Management promoted Eric Nuttal to lead portfolio manager. Obviously, he must have made a bundle to his employer partially because many TV investors execute on his words, so he deserves his promotion, congratulations Eric!

I wish to keep PMT for its natural gas exposure and sell my other gassy companies. PMT is an aggressive play, if you do not have the patience or do not wish to bet on natural gas there’s no reason to hold it. Obviously, PMT is a bet on more than just natural gas given their game changers. PMT is targeting 15% liquids weighting by the end of 2011. Did PMT cut the dividend too late? Was the cut too little? Is there hope for natural gas?

I would not be surprised to see PMT trading at $3.50 soon. If that happens, I might pick up more since I believe in the fundamentals of this company. Until then, I am holding and waiting on winter to see if it will have any impact on NG prices at all.

Delphi Energy(TSE:DEE) reported a minor loss in its Q3 results. Having reduced operating costs and increased their capital budget they are looking to exit the year at 9000+ boe/d. Its production is 80% weighted to natural gas; as such its share price received a decent haircut this fall when natural gas prices fell. They are targeting liquid rich targets to make up for natural gas weakness and had an active Q3 drilling program with a 100% success rate.

Please do your own due diligences before you take any investment decisions related to these companies.

Share and Enjoy:
  • Digg
  • Facebook
  • Google Bookmarks
  • Reddit
  • StumbleUpon
  • Twitter

Related posts:

  1. Q2 2010 Updates: Daylight Energy, Midway Energy, Delphi Energy
  2. Q3 2010 Updates: Spartan Exploration, Midway Energy, Bellatrix Exploration
  3. Q1 2011 Updates: SkyWest Energy, Hyperion Exploration, TriOil Resources
  4. Stock Picks: Delphi Energy (TSE:DEE)
  5. Stock Picks: Perpetual Energy (TSE:PMT)