December 14, 2018

Progress Energy Resources Corp (PRQ)

 

Progress Energy Resources Corporation (PRQ) is another of Canada’s mid-sized energy companies.  They are extremely focused on the natural gas sector.  The company’s main holdings include over 900,000 acres of land in the Montney fairway (making them the largest landowner in the formation).  The Montney area has been called, “The oil sands of natural gas” in terms of the amount of wealth ready to exploited from the Earth.  Because of this, Progress Energy has dedicated their team to developing the most efficient way to harvest the energy and is not overly concerned about other operations.  They currently are producing about 45,000 boe/d and are looking to boost production dramatically in the upcoming years (with a stated goal of 90,000 boe/d in five year’s time).  Progress (PRQ) management has pointed out the fact that their major land capital costs have already been absorbed, and they are now in a prime position to begin generating serious cash flow, even at current low natural gas prices.  With over double the land mass available for production as their closest natural gas competitor, there is little doubt that Progress Energy has all the assets available to become a dominant force within the sector.

 

Progress (PRQ) recently announced their budged for 2012.  The major highlight of the announcement was the fact that the company intends to allocate $465 million in 2012 in order to develop the north Montney part of their property holdings.  It will use the funds in concert with those from PETRONAS in a joint venture on the property.  Michael Culbert, the President and Chief Executive Officer of Progress stated, “In 2011 we executed on a number of key initiatives that have strengthened our balance sheet while attracting a strong joint venture partner, PETRONAS, to accelerate development of our North Montney assets and provide expertise in LNG development and market access, the focus of our 2012 capital program will continue to be on our North Montney resource base and expansion of our light oil play in the Deep Basin.”  The company intends to invest another $315 million in capital expenditures within its other properties.

 

In my opinion, Progress Energy Resources Corp (PRQ) is a great pure natural gas play.  They appear to be a very well-managed company that is poised for major growth if natural gas prices were to escalate and boost profit margins.  They certainly have the properties to be a long-term player in the natural gas sector.  Shares of the company have recently been trading in the $13.50 range.  The stock has been remarkably stable for a commodity-based company and has a 52-week high of $15.65 and a low of $11.55.  For a company that is so focused on growth, Progress still manages to provide shareholders with a $0.40 annual dividend (representing a yield of 3%).  If you believe that natural gas prices will rebound, Progress Energy (PRQ) would undoubtedly be a great way to capitalize on this.

 

Progress Energy Resources Corp (PRQ) Technical Analysis:

 PRQ trend analysis

PRQ is trading on a heaving down trend, CLICK HERE to get your free trend analysis report on PRQ

 

Progress Energy Resources Corp (PRQ) Stock Graph:

 TSE PRQ

Progress Energy Resources Corp (PRQ) Dividend Metrics:

TickerNamePriceDividend YieldPayout RatioDEBT_TO_MKT_CAPDividend Growth 5 yearsDividend Growth 1 years
PRQProgress Energy Resources Corp13.013.07N/A0.2162303N/A0