Energy Summary for March 2, 2018

by Stockwatch Business Reporter

West Texas Intermediate crude for April delivery gained 26 cents to $61.25 on the New York Merc, while Brent for May gained 54 cents to $64.37 (all figures in this para U.S.). Western Canadian Select traded at a discount of $28 to WTI ($33.25), unchanged. Natural gas for April lost a fraction of a cent to $2.70. The TSX energy index lost a fraction of a point to 169.13.

B.C. Montney producer Crew Energy Inc. (CR) gained 15 cents to $1.56 on 8.17 million shares after releasing its financials. The results were not particularly impressive; indeed, they were "as expected," as Scotia Capital analyst Cameron Bean put it. Crew's share price, however, has fallen from $4.61 in the last four months because of low gas prices.

Crew's plan to boost condensate production, specifically from its condensate-rich West Septimus project, is surely pleasing to investors and analysts, because condensate sells for more than gas. One thing, however, that is beginning to displease investors and analysts is the company's net debt, which rose to $345-million at year-end 2017 from $245-million at year-end 2016. Crew's net debt was pointed out by Scotia's Mr. Bean as well as Canaccord Genuity analyst Anthony Petrucci. Nevertheless, both analysts remain optimistic about Crew's assets in the B.C. Montney. Scotia's Mr. Bean maintains his rating of "sector outperform" and his price target of $3.75. Canaccord's Mr. Petrucci maintains his rating of buy and his more hopeful price target of $4.50.

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