A Tale of Two Stories, Vertex Value Fund & Vertex Managed Value Portfolio

  • Blackbird Energy (TSX-V:BBI): A Top Value Holding

One of our favourite CEOs, Garth Braun of Blackbird Energy, just published an update to shareholders about the tremendous growth of his company and his views on a national energy policy (or lack thereof), and its downstream effects.

We know Garth really well. We know Blackbird really well. As a top holding, we want to share this information so you can know what you own as well.

We encourage you to read his full note titled:

A Tale of Two Stories: Blackbird Continues to Grow and my View on the Social Cost Imposed on Canada by the Lack of a Viable National Energy Policy

A few highlights:

  • A Record Quarter: Year-over-year petroleum and natural gas revenue increased by 5,387% and average production increased by 4,446%. This is not a typo!
  • In a little over a year from now Blackbird will graduate to become an intermediate producer.
  • One of the highest Operating and Cash Flow Netbacks in the Montney.
    • $28.75/boe was among the top in their industry.
  • Well test results have strongly outperformed.
  • Lack of a national energy policy is hurting foreign investment and suppressing Canadian energy stocks.
  • Blackbird sponsors the Junior Achievement Program of Northern Alberta & NWT to help battle addiction.
  • Analyst targets (current price = $0.38):
    • $0.72 – Josef Schachter
    • $0.90 – Garett Ursu
    • $1.10 – Tom Kristiansen

We’re extremely excited about Blackbird’s potential to provide outsized returns to unitholders. Despite what they have already achieved, the company remains undervalued.

We’d also like to note that you won’t find Blackbird as a holding in an ETF. It’s the kind of stock that isn’t part of a passive program and requires an active eye to uncover.

Until Next Time…

 

Vertex Value Fund 

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Vertex Managed Value Portfolio

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