PRPRF - Prairie Provident Resources: A Leveraged Bet On Higher Canadian Oil Prices
Prairie Provident Resources (PRPRF) released the Q4 results. With the depressed Canadian oil prices impacted, the company generated negative adjusted funds flow due to its high costs.
Also, the liabilities are important. Management is renegotiating the financial covenants and the decommissioning liabilities are high.
In this context, the downside protection doesn't exist if oil and gas prices stay moderate. In the scenario of realized oil prices above C$70/boe, the upside potential is important. But Bonterra Energy's (BNEFF) potential is similar while lower costs and lower debt offer downside protection.
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