Saturn Oil & Gas: Still Cheap Heading Into 2026
Summarize this article with:
The Investment DoctorInvesting Group LeaderFollow5ShareSavePlay(5min)CommentsSummarySaturn Oil & Gas expects strong free cash flow in 2026, even at $60 WTI, supporting continued net debt reduction.SOIL:CA guides for 39,000-41,000 boe/d production in 2026, with 81% liquids, and C$350M adjusted funds flow at $60 WTI.Despite a net debt target of C$645-695M, SOIL:CA maintains a manageable leverage ratio just over 1.5x EBITDA and prudent capital allocation.I remain bullish on Saturn's mid- to long-term oil leverage and plan to increase exposure during current market weakness. AscentXmedia/iStock via Getty Images Introduction Earlier this year, I published an article discussing how Saturn Oil & Gas (SOIL:CA) (OILSF) was trading at just four times its anticipated free cash flow profile. Oil prices have been sliding since thatThis article was written byThe Investment Doctor23.35K FollowersFollowThe Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of SOIL:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I have a small long position in SOIL, and I am planning to further increase this position.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.