Deeply Undervalued Company with Multiple Catalysts — Executive Update of the "Money Pit to Money Maker" Idea
This executive update highlights a major catalyst not reflected in the stock’s valuation
The company I wrote about on Saturday recently released an executive update outlining their expectations for the development of a transformative asset. While the company’s management track record leaves much to be desired, the value of their assets and the ongoing operational and financial inflection is too compelling for me to ignore. Since the publication of the idea, the stock has meaningfully outperformed the broader oil and gas market as measured by the XOP ETF, which has been rallying too:
Despite this strong performance, I think the stock is still deeply undervalued. Especially considering the upside potential from the development of a project that could nearly double the company’s oil production by the end of the decade, as shared in this executive update.
In addition, the company is nearing completion of infrastructure projects with upside from the recent surge of electric power demand. Similar projects have doubled in value in the past year, according to Hart Energy reporting of Enverus analysis.
Despite these two needle-moving catalysts, the stock still trades roughly in line with the value of its base business, with significant upside from these catalysts and from the recent rebound in oil and natural gas prices.
You won’t want to miss this. The full video executive update is linked below.
