CA - InPlay Oil: A Rare 7.6% Yield That Is Also Undervalued

2024-03-26 21:01:28 ET

Summary

• InPlay Oil is a microcap Canadian oil and gas producer that offers a well-covered 7.6% monthly dividend with low CAPEX requirements.
• InPlay is undervalued compared to many Canadian peers. I expect multiple expansion as the company builds its monthly dividend track record. Total returns could exceed 30%.
• The opening of the Trans Mountain Pipeline Expansion is projected to improve margins for Canadian Producers by $2/barrel. This will create additional safety margin to the dividend.
• InPlay projects to have over 13 years of Total Proven reserves to sustain operations over the long term.

Thesis

In this article, I am again exploring the Canadian oil and gas market for what I believe is undiscovered value. Many investors focus their attention solely on the US and the Permian basin. If one looks north, you will find cheap land and lower CAPEX expense per well that allows many small cap companies to be cash flow positive. I believe Canadian shale plays are the frontier of the next decade as the Permian basin eventually reaches full maturity.

In this article I explore InPlay Oil ( IPOOF ). IPOOF is a microcap Canadian oil and natural gas producer that can have a unique position in your portfolio. IPOOF is a monthly dividend payer that produces a well covered 7.6% dividend. Both of these are rather unique features in the E&P space....

For further details see: