Topic: Penny Stocks

DELPHI ENERGY $1.03

DELPHI ENERGY $1.03 (Toronto symbol DEE; TSINetwork Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares outstanding: 155.5 million; Market cap: $161.7 million; No dividends paid) explores for, develops and produces oil and natural gas. About 64% of its output is gas; the remaining 36% is oil.

In the quarter ended March 31, 2016, Delphi’s production fell 23.7%. That was after the company sold some fields. The lower output offset an average 11.0% increase in realized oil and gas prices. As a result, cash flow per share fell to $0.05 from $0.07.

The company used the proceeds from its asset sales to cut its debt to $110.4 million from $161.2 million. It will now use its enhanced cash flow to expand drilling. This will let it increase its production while it waits for energy prices to move higher.

Delphi Energy is a buy for aggressive investors.

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