Stock on Focus: Pengrowth Energy Corp (PGH)

Company Profile:

Pengrowth Energy Corporation engages in the acquisition, exploration, development, and production of oil and natural gas assets in the Alberta, British Columbia, Saskatchewan, and Nova Scotia provinces in Canada. The company explores for crude oil, bitumen, natural gas, shale gas, and natural gas liquids. Its principal producing properties are the Lindbergh thermal property covering an area of 20,800 net acres situated in Calgary, Alberta; the Greater Olds/Garrington area located in Calgary, Alberta; the Swan Hills area situated in Edmonton, Alberta; and the Groundbirch property covering an area of 12,536 net acres located in Fort St. John, British Columbia. As of December 31, 2016, the company had 2,464 net producing oil and natural gas wells; and 1,375 net non-producing wells, as well as total proved plus probable reserves of 608.5 millions of barrels of oil equivalent. Pengrowth Energy Corporation was founded in 1988 and is headquartered in Calgary, Canada.

Recent News:

On Jan. 17, 2018, the company announced that the Company’s Board of Directors has approved a 2018 capital expenditure budget of $65 million. 2018 capital spending will be focused on adding production volumes at the Company’s two 100 percent owned and operated assets at Lindbergh and Groundbirch.

For the quarter ended September 30, 2017, the company reported revenues of USD 68.14 million, net earnings of USD -115.45 million. Gross margins widened from -23.23% to -11.12% compared to the same period last year, operating (EBITDA) margins now 23.89% from 31.05%.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

PGH’s strengths can be seen in its better growth and strong solvency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI stands at 51.57 with positive bias. We rate Pengrowth Energy Corp (PGH) a STRONG BUY.