As it was the case during the previous quarter, Painted Pony Energy (PDPYF) reported strong Q1 results. Thanks to its marketing diversification and hedges, the company generated a total positive netback above C$0.6/mcfe.
But even with half of the 2019 production hedged at a price of C$4.84/mcfe, management forecasts a lower 2019 total realized price. Gas spot prices in North America and temporary issues will contribute to lower realized prices.
Based on Q4 2018 and Q1 2019 results, the valuation is attractive. But if we take into account the expected netbacks over the