Canacol Energy (OTCQX:CNNEF) stock price decreased by 14% year-to-day (YTD), while Latin American peers -40% YTD. In spite of having a better relative performance; we believe that the company deserves better, making the current market price an attractive opportunity entry. The main three reasons are: i) predictable top line, ii) proved track-record, and iii) attractive valuation.
Reason one:
CNNEF has a predictable top line because of its stable selling prices and selling volumes. CNNEF only produces gas, and 80% of that production is under "take-or-pay" contracts (fixed volumes and prices) in USD, which