JAG - Jagged Peak Energy: Valuation Becoming More Attractive Despite 2019 Cash Burn
Jagged Peak Energy's (JAG) stock hasn't done very well lately, as it's another company that's expecting significant cash burn during 2019. Overall though, it should be able to keep its leverage from becoming too high (at around 1.5x at the end of 2019), and I'd expect its 2020 cash burn to be significantly reduced as long as management acts fairly conservatively. Jagged Peak appears to be worth a look at its current price, which now values it at under 5.0x EBITDAX despite minimal contribution from its production of natural gas and NGLs.