Ep. 511: BlackBird Energy: Driving Innovation

Welcome back to another episode of Wall Street Unplugged. This week I welcome back Garth Braun, Chairman & CEO of BlackBird Energy (BBI.V). Last time Garth was on the show he introduced listeners to one of the finest oil patches in North America - Canada’s Montney Formation. This liquid-rich shale area is now home to some of largest players in the industry - companies like Encana, Apache, Sinopec, and Shell. It’s Canada’s next big energy bet. And Blackbird Energy, the small-cap exploration and development company, was one of the first to discover it. So to start off the episode, Garth catches listeners up to date. He begins by breaking down Blackbird’s recent major capital raise… and how the company has added even more land into the Montney. Moving on, we then talk about the sector as a whole. As the “oil supply glut” continues to haunt investors across the industry, not to mention the increase of drilling costs overtime… companies like BlackBird Energy have been forced to innovate and adapt to current market conditions. And this is what makes Garth’s company so unique. Blackbird has implemented and acquired a 10% stake in Stage Completions - a leading edge optimization technology that reduces drill times, increases tonnage, and cuts costs practically in half. Meaning, this is a company that can remain profitable with prices as low as $30/barrel. And in my 20+ years of research,  I’ve only seen a few cases where a company has that ability. If you’re invested in some of these huge producers that can only make profits on $50, $60 oil prices, it’s time to take another look. Blackbird Energy is trading at roughly the same levels as it was last time Garth was on the show. And although that was only 3 months ago, so much within the company has changed... For one, they’ve added more onto the Montney, they have increased reserves by more than 1,000%, and they have just placed over $80M into the bank. More importantly, Garth has managed to do all of this with zero debt, yet the stock is still priced under $1. To end the episode, Garth uncovers what investors can expect in the next 6 to 12 months… along with the company’s ambitious long-term growth plans. Although this stock might currently pose as too aggressive for some investors, on today’s episode, you won’t leave empty handed. Be sure to tune in as there is a ton of valuable information and insight on today's oil and liquids industry. Good Investing, Frank Curzio