In a new report, Raymond James analyst Jeremy McCrea explained how conventional tools for assessing energy E&P stocks typically miss the mark. Instead, McCrea used Raymond James’ five-point checklist to search for value among Canadian E&P stocks.

Convention Isn’t Working

According to McCrea, conventional metrics used by investors fail to effectively differentiate winners and losers when it comes to E&P stocks. “Common metrics such as payout ratios, CFPS, production growth rates, and valuation metrics (EV/DACF and 2P NAV Valuations) do not truly demonstrate the profitability of a business and the long-term share price performance,” he added.

The Alternative

Instead of conventional metrics, McCrea explained…

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