Risk factor
Very high price volatility
Profitability factor
Greatly overvalued vs peers
About
New Stratus Energy Inc. engages in the acquisition, exploration, and development of oil and gas properties principally in South America. It has a farm-in agreement to acquire 100% interests in Block VMM-18 located in Cuenca Valle Medio del Magdalena, Colombia; and operates Blocks 16 and 67 oil consortiums located in Ecuador. The company was formerly known as Red Rock Energy Inc. and changed its name to New Stratus Energy Inc. in August 2017. New Stratus Energy Inc. was incorporated in 2005 and is headquartered in Calgary, Canada.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is overpriced on P/FCF.
