The more I research this stock, the more I believe it's an overlooked sleeper.
With a PE ratio of just 2.6, EPS of 12.6 cents, rising production (currently 2,150 BOEPD) and diversified, long-life assets in a range of oil-rich U.S. states and a gradual up-tick in the price of oil, this stock must eventually come to the market's attention. When it does, it could kick hard, as CVN did recently from the same low P/E base. That's right, CVN had a P/E of around 2 just a few months ago.
I know it hasn't been promoted as vocally as some others (AZZ comes to mind!) but it appeals to me very much as the quiet achiever, paying down debt and trimming exploration costs while boosting production. With its active drilling campaign funded from revenue, and low production costs of around US$15 / barrel, AMU can make money where others can't. And it stands to make LOTS of money when oil and gas prices get back to recent historical averages, which I believe they will.
Just as CVN seemed unloved a few short weeks ago before it rocketed 320% to new highs, so too is AMU stand-out value at current levels in my view.
The next update should show the return to production of previously shut-down wells and the crazy-low gas prices endured in recent months won't last as the US winter begins to loom.
A nice hold for the patient?
DYOR
Gupper
AMU Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
