Penn West Petroleum Ltd (USA) (PWE), Pengrowth Energy Corp (USA) (PGH): Should You Jump Aboard This Canadian Oil and Gas Producer?

The first phase of Lindbergh commercial development is expected to reach 12,500 bbl/d of bitumen by early 2015. This is expected to be low cost, low decline, stable production, with a 25 year reserve life. Pengrowth Energy Corp (USA) (NYSE:PGH) completed recently the sale of assets valued at $700 million, and this was taken into account for the calculations of the table above.

Enerplus Corp (USA) (NYSE:ERF) has a diversified asset base across a variety of resource plays that extend from the Bakken/Three Forks resource play in North Dakota to the liquids-rich Deep Basin area of the Western Canadian Sedimentary Basin, along with a large position in the Marcellus shale gas and significant waterflood operations in Canada.

Enerplus Corp (USA) (NYSE:ERF) has a capital budget of $685 million for 2013, with about 62% of the budget to be spent on the U.S. acreage. Enerplus also maintains its production exit rate of 84,000 to 88,000 boepd.

Bonavista Energy is geographically focused within select, multi-zone regions primarily in Alberta and British Columbia, targeting the Cardium formation along with Viking oil and the liquids rich Montney.

With a disciplined capital budget at $430 million for 2013, Bonavista plans to drill between 120 and 125 wells and expects to produce between 73,500 and 74,500 boepd by year end, representing an approximate 7% gain over 2012.

Foolish bottom line

I believe that you had better not jump aboard ARC’s train because the company isn’t in bargain territory currently. As shown above, there are several peers with a more oil-weighted production coupled with a more attractive valuation than ARC’s. I am not saying that ARC’s stock can’t climb higher from the current levels, but the odds are not in your favor.

Nathan Kirykos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Should You Jump Aboard This Canadian Oil and Gas Producer? originally appeared on Fool.com and is written by Nathan Kirykos.

Nathan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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