A North American Energy Play With a 4% Dividend Yield and Upside

As I wrote last week, I’m on the hunt for exposure to undervalued oil reserves. And I think the best place to look for them right now is North American oil companies with unappreciated unconventional acreage. One company that I think fits the bill perfectly is mid-sized Canadian light oil producer Petrobakken (PBKEF.PK). Now I don’t actually own much of Petrobakken directly. But I do own a significant position through its parent company Petrobank (PEGF.PK). As the title suggests, Petrobakken has a nice dividend yield and I think it is undervalued by at least 30%, likely more. I will get to my valuation thinking later. But first I’d like to explain what has caused the stock market to not appreciate the true intrinsic value of the company. Petrobakken – Why Is It Cheap ? (current stock price is $22.15) Of course trying to answer why the stock market prices a... Read more