VREYF - Torc Oil & Gas Earnings: The Location Of Oil Assets Mattered
Torc Oil & Gas (VREYF) released its Q4 results. Due to the location of the oil assets in the Southeast Saskatchewan, the impact of the depressed oil prices in Canada was limited. The debt increased to a reasonable level while the production grew by 29%.
With a C$180 million capital program, the production growth will slow down in 2019. Management expects to generate about C$100 million of free cash flow, assuming WTI prices of US$55/bbl.
The stock price is now below my estimation of conservative fair value. But the margin of safety