Valuation Update With 7 Day Price Move • Oct 02
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CA$2.00, the stock trades at a trailing P/E ratio of 3.6x. Average forward P/E is 9x in the Oil and Gas industry in Canada. Total returns to shareholders of 257% over the past three years. Price Target Changed • Sep 20
Price target increased by 17% to CA$3.49 Up from CA$2.98, the current price target is an average from 4 analysts. New target price is 41% above last closing price of CA$2.47. The company posted earnings per share of CA$1.04 last year. Announcement • Sep 19
GMT Capital Intends Vote Against on Takeover Deal On September 18, 2023, GMT Capital, announced that it intends to vote against an all-stock deal proposed by larger rival Strathcona Resources as it undervalues Pipestone Energy. A Reuters dispatch to The Globe says that Canadian oil producer Strathcona plans to go public by acquiring Pipestone to create a combined business with a market capitalization of $8.6 billion. As per the all-stock deal, which is expected to close in October, Pipestone shareholders will receive 9.05 per cent of the pro forma equity in the combined company, with existing Strathcona shareholders owning the rest. Investment firm GMT Capital, which holds a 13.47-per-cent stake in Pipestone, said the buyout deal undervalues Pipestone Energy's shares. The acquisition requires approval from two-thirds of Pipestone shareholder votes cast at a meeting in September. Strathcona and Pipestone declined to comment. Upcoming Dividend • Sep 07
Upcoming dividend of CA$0.03 per share at 5.0% yield Eligible shareholders must have bought the stock before 14 September 2023. Payment date: 29 September 2023. Payout ratio is a comfortable 9.7% and this is well supported by cash flows. Trailing yield: 5.0%. Lower than top quartile of Canadian dividend payers (6.2%). In line with average of industry peers (5.0%). Price Target Changed • Aug 15
Price target decreased by 17% to CA$2.98 Down from CA$3.58, the current price target is an average from 3 analysts. New target price is 29% above last closing price of CA$2.32. The company posted earnings per share of CA$1.04 last year. Announcement • Aug 02
Strathcona Resources, Ltd. entered into a definitive agreement to acquire Pipestone Energy Corp. (TSX:PIPE) in a reverse merger transaction. Strathcona Resources, Ltd. entered into a definitive agreement to acquire Pipestone Energy Corp. (TSX:PIPE) in a reverse merger transaction on August 1, 2023. Pursuant to the agreement, Strathcona will acquire all of the issued and outstanding common shares of Pipestone for 100% share consideration. Upon closing of the Transaction, Strathcona will become a public reporting issuer in Canada. Pursuant to the Transaction, Strathcona and Pipestone will be amalgamated to form a new corporation, which will continue as "Strathcona Resources Ltd." Following completion of the transaction, existing Pipestone shareholders will receive approximately 9.05% of the pro forma equity in resulting issuer on a fully-diluted basis (approximately 8.87% basic). Existing Strathcona shareholders, comprised of Waterous Energy Fund (99.7%) and Strathcona employees (0.3%), will own the balance. The agreement provides for mutual non-completion fees of CAD 25 million in the event the transaction is not completed or is terminated by either party in certain circumstances. Resulting company will be led by Adam Waterous (Executive Chairman), Rob Morgan (President and Chief Executive Officer), Connor Waterous (Senior Vice President and Chief Financial Officer), and Strathcona’s experienced executive team.
The transaction is subject to approval from Pipestone shareholders, the approval of the Court of King's Bench of Alberta, the receipt of approval under the Competition Act (Canada), approval of the Toronto Stock Exchange with respect to the listing of resulting issuer shares, and other customary closing conditions. The board of directors of Pipestone have approved the transaction. BMO Capital Markets is acting as exclusive financial advisor to the Special Committee of Pipestone. Raymond James Ltd. provided a fairness opinion to the Pipestone Board of Directors. McCarthy Tétrault LLP is acting as Pipestone’s legal advisor for the Transaction. CIBC Capital Markets, Scotiabank and Mizuho Securities USA are acting as financial advisors to Strathcona in connection with the Transaction. Blake, Cassels & Graydon LLP is serving as legal advisor to Strathcona in connection with the Transaction, and Stikeman Elliott LLP is serving as legal advisor to Waterous Energy Fund in connection with the transaction. Announcement • Jun 21
Pipestone Energy Corp. Announces Paul Wanklyn Chosen to Not Put Himself Up for Re-Election to the Board Pipestone Energy Corp. as previously disclosed on May 10, 2023, Paul Wanklyn, President and Chief Executive Officer of Pipestone Energy Corp. ("Pipestone"), has taken a leave of absence for health reasons. Mr. Wanklyn has subsequently chosen to not put himself up for re-election to the Board of Directors at the annual general meeting of shareholders to be held on June 22, 2023 as he remains on leave. Announcement • May 16
Pipestone Energy Corp. Provides Update to Wildfire Production Impact Pipestone Energy Corp. advised that its operations in the Grande Prairie area are again being impacted by the ongoing wildfires. As a result of the precautionary shut-in of certain third-party infrastructure and associated operated producing locations, approximately 20,000 boe/d of production has been temporarily curtailed since the evening of May 12, 2023. From May 8th to May 12th, Pipestone had restarted the majority of its producing assets until the resurgence of wildfires in proximity to certain third-party processing facilities. The Company is not aware of any significant damage or loss to either its owned or third-party infrastructure. While timing remains uncertain, Pipestone is ready to resume production as soon as the currently shut down third party infrastructure is restarted. Pipestone will provide further updates to the market as the situation unfolds. Reported Earnings • May 11
First quarter 2023 earnings released: EPS: CA$0.11 (vs CA$0.14 in 1Q 2022) First quarter 2023 results: EPS: CA$0.11. Revenue: CA$140.9m (down 1.5% from 1Q 2022). Net income: CA$30.9m (up 14% from 1Q 2022). Profit margin: 22% (up from 19% in 1Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to stay flat during the next 2 years compared to a 1.1% growth forecast for the Oil and Gas industry in Canada. Reported Earnings • Mar 09
Full year 2022 earnings released: EPS: CA$1.04 (vs CA$0.35 in FY 2021) Full year 2022 results: EPS: CA$1.04 (up from CA$0.35 in FY 2021). Revenue: CA$609.9m (up 62% from FY 2021). Net income: CA$220.1m (up 224% from FY 2021). Profit margin: 36% (up from 18% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.8% p.a. on average during the next 2 years, compared to a 1.4% decline forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 117% per year but the company’s share price has only increased by 82% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Feb 05
Insider recently bought CA$323k worth of stock On the 2nd of February, Thomas Claugus bought around 101k shares on-market at roughly CA$3.20 per share. This transaction amounted to 6.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$455k more in shares than they have sold in the last 12 months. Recent Insider Transactions Derivative • Jan 20
Independent Director exercised options to buy CA$76k worth of stock. On the 16th of January, William Lancaster exercised 29.17k options to receive shares at no cost, then sold around 4.66k of them at CA$3.00 each and kept the remainder. Since March 2022, William's direct individual holding has increased from 159.70k shares to 173.65k. Company insiders have collectively bought CA$2.3m more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • Dec 28
Insider recently bought CA$52k worth of stock On the 22nd of December, Thomas Claugus bought around 24k shares on-market at roughly CA$2.16 per share. This transaction amounted to 1.6% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth CA$102k. Insiders have collectively bought CA$65k more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Dec 26
Investor sentiment improved over the past week After last week's 16% share price gain to CA$3.17, the stock trades at a trailing P/E ratio of 4.1x. Average forward P/E is 6x in the Oil and Gas industry in Canada. Total returns to shareholders of 96% over the past three years. Price Target Changed • Nov 16
Price target decreased to CA$5.13 Down from CA$6.67, the current price target is an average from 6 analysts. New target price is 42% above last closing price of CA$3.62. Stock is down 6.5% over the past year. The company posted earnings per share of CA$0.35 last year. Price Target Changed • Nov 10
Price target decreased to CA$5.29 Down from CA$6.67, the current price target is an average from 6 analysts. New target price is 48% above last closing price of CA$3.58. Stock is down 13% over the past year. The company posted earnings per share of CA$0.35 last year. Valuation Update With 7 Day Price Move • Oct 08
Investor sentiment improved over the past week After last week's 15% share price gain to CA$4.27, the stock trades at a trailing P/E ratio of 4.4x. Average forward P/E is 6x in the Oil and Gas industry in Canada. Total returns to shareholders of 262% over the past three years. Valuation Update With 7 Day Price Move • Sep 23
Investor sentiment deteriorated over the past week After last week's 21% share price decline to CA$3.70, the stock trades at a trailing P/E ratio of 3.9x. Average forward P/E is 5x in the Oil and Gas industry in Canada. Total returns to shareholders of 201% over the past three years. Recent Insider Transactions Derivative • Sep 21
Chief Operating Officer exercised options to buy CA$85k worth of stock. On the 19th of September, Dustin Hoffman exercised 40.00k options to receive shares at no cost, then sold around 20.36k of them at CA$4.60 each and kept the remainder. Since September 2021, Dustin's direct individual holding has increased from 203.35k shares to 262.13k. Company insiders have collectively bought CA$1.9m more than they sold, via options and on-market transactions, in the last 12 months. Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment improved over the past week After last week's 15% share price gain to CA$4.93, the stock trades at a trailing P/E ratio of 5.2x. Average forward P/E is 6x in the Oil and Gas industry in Canada. Total returns to shareholders of 348% over the past three years. Reported Earnings • Aug 11
Second quarter 2022 earnings released: EPS: CA$0.43 (vs CA$0.006 loss in 2Q 2021) Second quarter 2022 results: EPS: CA$0.43 (up from CA$0.006 loss in 2Q 2021). Revenue: CA$187.3m (up 129% from 2Q 2021). Net income: CA$82.1m (up CA$83.3m from 2Q 2021). Profit margin: 44% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Over the next year, revenue is forecast to grow 48%, compared to a 77% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has increased by 113% per year but the company’s share price has only increased by 60% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment improved over the past week After last week's 18% share price gain to CA$4.29, the stock trades at a trailing P/E ratio of 8.4x. Average forward P/E is 6x in the Oil and Gas industry in Canada. Total returns to shareholders of 258% over the past three years. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CA$3.47, the stock trades at a trailing P/E ratio of 6.8x. Average forward P/E is 6x in the Oil and Gas industry in Canada. Total returns to shareholders of 192% over the past three years. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CA$5.13, the stock trades at a trailing P/E ratio of 10.1x. Average forward P/E is 8x in the Oil and Gas industry in Canada. Total returns to shareholders of 256% over the past three years. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 17% share price gain to CA$5.06, the stock trades at a trailing P/E ratio of 10.1x. Average forward P/E is 8x in the Oil and Gas industry in Canada. Total returns to shareholders of 184% over the past three years. Reported Earnings • May 13
First quarter 2022 earnings released: EPS: CA$0.14 (vs CA$0.005 loss in 1Q 2021) First quarter 2022 results: EPS: CA$0.14 (up from CA$0.005 loss in 1Q 2021). Revenue: CA$143.1m (up 110% from 1Q 2021). Net income: CA$27.1m (up CA$28.0m from 1Q 2021). Profit margin: 19% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Over the next year, revenue is forecast to grow 56%, compared to a 65% growth forecast for the industry in Canada. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Announcement • May 12
Pipestone Energy Corp. Provides Production Guidance for the Second Quarter and Full Year of 2022 Pipestone Energy Corp. provided Production Guidance for the second quarter and full year of 2022. For the quarter, the company expects production to average between 30,000 32,000 boe/d.For the year, the company expects production to be 31,000 33,000 boe/d. Recent Insider Transactions • Apr 16
Chief Financial Officer recently sold CA$107k worth of stock On the 13th of April, Craig Nieboer sold around 20k shares on-market at roughly CA$5.36 per share. This was the largest sale by an insider in the last 3 months. This was Craig's only on-market trade for the last 12 months. Announcement • Apr 16
Pipestone Energy Corp., Annual General Meeting, Jun 23, 2022 Pipestone Energy Corp., Annual General Meeting, Jun 23, 2022. Recent Insider Transactions Derivative • Apr 15
Chief Financial Officer exercised options to buy CA$107k worth of stock. On the 12th of April, Craig Nieboer exercised 40.00k options to receive shares at no cost, then sold around 20.34k of them at CA$5.34 each and kept the remainder. Since September 2021, Craig's direct individual holding has increased from 374.75k shares to 429.63k. Company insiders have collectively bought CA$2.4m more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions Derivative • Mar 21
President exercised options to buy CA$201k worth of stock. On the 17th of March, Paul Wanklyn exercised 86.88k options to receive shares at no cost, then sold around 44.20k of them at CA$4.79 each and kept the remainder. Since March 2021, Paul's direct individual holding has increased from 647.77k shares to 715.81k. Company insiders have collectively bought CA$2.0m more than they sold, via options and on-market transactions, in the last 12 months. Valuation Update With 7 Day Price Move • Mar 16
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CA$4.61, the stock trades at a trailing P/E ratio of 12.9x. Average forward P/E is 8x in the Oil and Gas industry in Canada. Total returns to shareholders of 163% over the past three years. Reported Earnings • Mar 11
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: CA$0.35 (up from CA$0.091 loss in FY 2020). Revenue: CA$376.9m (up 186% from FY 2020). Net income: CA$67.9m (up CA$85.2m from FY 2020). Profit margin: 18% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 6.0%. Over the next year, revenue is forecast to grow 39%, compared to a 54% growth forecast for the oil industry in Canada. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 46% per year, which means it is significantly lagging earnings growth. Price Target Changed • Mar 10
Price target increased to CA$6.50 Up from CA$5.88, the current price target is an average from 2 analysts. New target price is 25% above last closing price of CA$5.22. Stock is up 170% over the past year. The company posted a net loss per share of CA$0.091 last year. Announcement • Feb 24
Pipestone Energy Corp. to Report Q4, 2021 Results on Mar 09, 2022 Pipestone Energy Corp. announced that they will report Q4, 2021 results Pre-Market on Mar 09, 2022 Price Target Changed • Feb 17
Price target increased to CA$6.17 Up from CA$5.63, the current price target is provided by 1 analyst. New target price is 35% above last closing price of CA$4.58. Stock is up 232% over the past year. The company posted a net loss per share of CA$0.091 last year. Recent Insider Transactions • Feb 06
Insider recently sold CA$68k worth of stock On the 1st of February, Thomas Claugus sold around 16k shares on-market at roughly CA$4.30 per share. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought CA$410k more than they sold in the last 12 months. Price Target Changed • Feb 03
Price target increased to CA$5.88 Up from CA$5.38, the current price target is provided by 1 analyst. New target price is 24% above last closing price of CA$4.75. Stock is up 440% over the past year. The company posted a net loss per share of CA$0.091 last year. Price Target Changed • Jan 27
Price target increased to CA$5.63 Up from CA$5.21, the current price target is provided by 1 analyst. New target price is 23% above last closing price of CA$4.57. Stock is up 457% over the past year. The company posted a net loss per share of CA$0.091 last year. Recent Insider Transactions Derivative • Jan 21
Independent Director exercised options to buy CA$132k worth of stock. On the 17th of January, William Lancaster exercised options to buy 29k shares at a strike price of around CA$4.68, costing a total of CA$137k. This transaction amounted to 25% of their direct individual holding at the time of the trade. Since March 2021, William's direct individual holding has increased from 104.50k shares to 117.46k. Company insiders have collectively bought CA$1.6m more than they sold, via options and on-market transactions, in the last 12 months. Price Target Changed • Jan 19
Price target increased to CA$5.38 Up from CA$5.00, the current price target is provided by 1 analyst. New target price is 15% above last closing price of CA$4.66. Stock is up 448% over the past year. The company posted a net loss per share of CA$0.091 last year. Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS CA$0.10 (vs CA$0.06 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CA$82.9m (up 171% from 3Q 2020). Net income: CA$18.8m (up CA$30.2m from 3Q 2020). Profit margin: 23% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Price Target Changed • Oct 19
Price target increased to CA$4.13 Up from CA$3.67, the current price target is provided by 1 analyst. New target price is 54% above last closing price of CA$2.67. Stock is up 385% over the past year. The company posted a net loss per share of CA$0.091 last year. Price Target Changed • Oct 15
Price target increased to CA$3.92 Up from CA$3.46, the current price target is provided by 1 analyst. New target price is 42% above last closing price of CA$2.76. Stock is up 393% over the past year. Price Target Changed • Oct 07
Price target increased to CA$3.67 Up from CA$3.25, the current price target is provided by 1 analyst. New target price is 33% above last closing price of CA$2.75. Stock is up 358% over the past year. Reported Earnings • Aug 12
Second quarter 2021 earnings released: CA$0.006 loss per share (vs CA$0.10 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: CA$81.8m (up 205% from 2Q 2020). Net loss: CA$1.19m (loss narrowed 94% from 2Q 2020). Announcement • Aug 12
Pipestone Energy Corp. Provides Production Guidance for the Full Year 2021, 2022 and 2023 Pipestone Energy Corp. provided production guidance for the full year 2021, 2022 and 2023. For the year 2021, the company expected production to be in the range of 24,000 boe/d to 26,000 boe/d.
For the year 2021, the company expected production to be in the range of 33,000 boe/d to 36,000 boe/d.
For the year 2021, the company expected production to be in the range of 37,000 boe/d to 40,000 boe/d. Recent Insider Transactions Derivative • Jul 07
President exercised options to buy CA$80k worth of stock. On the 1st of July, Paul Wanklyn exercised options to buy 38k shares at a strike price of around CA$2.27, costing a total of CA$86k. This transaction amounted to 5.8% of their direct individual holding at the time of the trade. Since September 2020, Paul's direct individual holding has increased from 473.06k shares to 647.77k. Company insiders have collectively bought CA$1.4m more than they sold, via options and on-market transactions, in the last 12 months. Executive Departure • Jul 01
Non-Independent Director Geeta Sankappanavar has left the company On the 29th of June, Geeta Sankappanavar's tenure as Non-Independent Director ended after 2.5 years in the role. As of March 2021, Geeta still personally held 240.24k shares (CA$113k worth at the time). Geeta is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 2.33 years. Price Target Changed • Jun 22
Price target increased to CA$3.15 Up from CA$2.90, the current price target is an average from 2 analysts. New target price is 47% above last closing price of CA$2.15. Stock is up 291% over the past year. Price Target Changed • Jun 18
Price target increased to CA$3.05 Up from CA$2.85, the current price target is an average from 2 analysts. New target price is 54% above last closing price of CA$1.98. Stock is up 260% over the past year. Price Target Changed • Jun 10
Price target increased to CA$2.90 Up from CA$2.67, the current price target is an average from 2 analysts. New target price is 65% above last closing price of CA$1.76. Stock is up 198% over the past year. Recent Insider Transactions • Jun 09
Non-Independent Director recently bought CA$448k worth of stock On the 7th of June, Garth Braun bought around 253k shares on-market at roughly CA$1.77 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$743k more in shares than they have sold in the last 12 months. Reported Earnings • May 13
First quarter 2021 earnings released The company reported a mediocre first quarter result with weaker earnings and weaker control over costs, although revenues improved. First quarter 2021 results: Revenue: CA$47.1m (up 54% from 1Q 2020). Net loss: CA$954.0k (down 106% from profit in 1Q 2020). Recent Insider Transactions Derivative • Mar 27
President exercised options to buy CA$178k worth of stock. On the 24th of March, Paul Wanklyn exercised options to buy 109k shares at a strike price of around CA$1.66, costing a total of CA$181k. This transaction amounted to 21% of their direct individual holding at the time of the trade. Since March 2020, Paul's direct individual holding has increased from 243.80k shares to 531.40k. Company insiders have collectively bought CA$962k more than they sold, via options and on-market transactions, in the last 12 months. Reported Earnings • Mar 13
Full year 2020 earnings released: CA$0.091 loss per share (vs CA$0.074 loss in FY 2019) The company reported a solid full year result with improved revenues and control over costs, although losses increased. Full year 2020 results: Revenue: CA$131.8m (up 121% from FY 2019). Net loss: CA$17.3m (loss widened 24% from FY 2019). Oil reserves and sales price Proven reserves: 0.025 MMbbls Average sales price/bbl: US$37.46 Gas reserves and sales price Proven reserves: 435.936 Bcf Average sales price/mcf: US$2.42 LNG reserves and sales price Proven reserves: 48.912 MMbbls Average sales price/bbl: US$36.06 Combined production and costs Oil equivalent production: 5.683 MMboe (1.738 MMboe in FY 2019) Average production cost/Boe: US$11.18 (US$13.89/Boe in FY 2019) Analyst Estimate Surprise Post Earnings • Mar 13
Revenue beats expectations Revenue exceeded analyst estimates by 4.6%. Over the next year, revenue is forecast to grow 117%, compared to a 34% growth forecast for the Oil and Gas industry in Canada. Is New 90 Day High Low • Mar 10
New 90-day high: CA$1.99 The company is up 202% from its price of CA$0.66 on 09 December 2020. The Canadian market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Oil and Gas industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$19.73 per share. Is New 90 Day High Low • Feb 05
New 90-day high: CA$0.91 The company is up 75% from its price of CA$0.52 on 06 November 2020. The Canadian market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Oil and Gas industry, which is up 33% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$15.19 per share. Price Target Changed • Jan 24
Price target raised to CA$1.20 Up from CA$1.09, the current price target is an average from 3 analysts. The new target price is 45% above the current share price of CA$0.83. As of last close, the stock is down 42% over the past year. Is New 90 Day High Low • Jan 13
New 90-day high: CA$0.79 The company is up 36% from its price of CA$0.58 on 14 October 2020. The Canadian market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Oil and Gas industry, which is up 25% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CA$15.28 per share.