Rock Energy Inc. (RE:TSX) - June 19th 2013
Rock Energy Inc. is a junior Canadian energy company involved in the exploration, development, and production of oil and natural gas in western Canada. In total, Rock Energy has a land position in excess of 90,000 net undeveloped acres. More than 100 developmental drilling targets are hosted within the company’s core areas.
Using its recent closing price of $1.35 per share, Rock Energy is presently trading at just 2.3 times its 2013 forecast cash flow despite its numerous low risk development well locations and a strong management team. Furthermore, the company has a strong balance sheet relative to many other junior oil and gas producers with less than $13 million in debt and a debt to cash flow ratio of just 0.6.