October 31, 2014

Longview Oil Corp (LNV)

 

 

Longview Oil Corporation (LNV) is another of Canada’s large energy companies that dominate the TSX.  They were created in 2011 in order to acquire the former Advantage Oil.  Their oil and oil-related properties are located in West Central Alberta, Llyodminster area, and Southeast Saskatchewan.  Like the majority of Canada’s energy companies, Longview’s core focuses are to develop their properties as efficiently as possible, and invest in solid acquisitions that hold long-term value for the company.  In this manner they home to provide shareholders with immediate dividend returns, as well as overall growth.  Longview’s (LNV) main strategic initiatives are to conduct low risk drilling, boost their recompletion and enhanced oil recovery activities, target light oil properties for acquisition, make sure all acquisitions have a long life span (whether they are oil or natural gas), explore undeveloped land bases through drilling or farmout, and to maintain a conservative financial structure.

 

Longview (LNV) is looking to develop about 257 separate drilling locations, and has plans in place for over 30 new wells in the next twelve months.  This part of an overall expansion that will see approximately $54 million invested over the upcoming year, with 83% of that figure dedicated specifically to light oil development.

 

The key metrics for Longview in 2011 was their 8% production growth (bring the company up to 6,800 boe/d) and royalty rate of 18-20%.  The operating expenses came in at a cost-efficient $16-$17/boe, while total capital expenditures were listed at $70-$75 million.  Going forward, 100% of capital expenditures will be allocated to oil or oil-based products.  The most important event for Longview (LNV) in 2011 was their IPO which allowed them purchase Advantage Oil and retire bank debt.  Shares debuted at $10 each, and the IPO raised approximately $246 million.

 

Being such a new company, there is a not a lot of information or investor outlooks available for Longview Oil Corp (LNV).  Their stock is currently trading at $10.15, which is very close to their IPO price from earlier this year.  During 2011 the 52-week low for Longview shares was $7.50, and the 52-week high was $12.65.  While they are a fairly new company, Longview (LNV) has managed to accumulate a market capitalization of $474 million.  The company’s annual dividend yield of $0.60.  The stock has a forward Price-to-Earnings ratio of 10.36.  Overall, I believe there are several better established energy companies within Canada.  The relatively low dividend (compared to its competitors) is not what I’m looking for in the sector.

 

Longview (LNV) Technical Analysis:

LNV Trend Analysis

LNV is on a uptrend, click here to get the technical analysis report for free.

 

Longview (LNV) Stock Graph:

TSE LNV

Longview (LNV) Dividend Metrics:

TickerNamePriceDividend YieldPayout RatioDEBT_TO_MKT_CAPDividend Growth 5 yearsDividend Growth 1 years
LNVLongview Oil Corp10.985.48N/AN/AN/AN/A