Seeking Alpha: Lightstream Resources Up, Down, And All Around

It hasn't been a boring six months since the last time I looked at Lightstream Resources (OTCPK:LSTMF) (LTS.TO). I was pretty lukewarm on the shares at that time given the company's high debt, iffy production growth outlook, and execution challenges in the Bakken. Since that last article, the shares dropped about 15% in the first month, roared back with a nearly 70% gain, and then pulled back by a third, ending down about 2% since my earlier article.

So will the real Lightstream please stand up? On the plus side, Lightstream earns some of the best netbacks in the Canadian E&P sector, has a pretty robust drilling inventory across the Cardium, Bakken, and Swan Hills, and generates good capital returns. On the negative side, recent disappointments with Swan Hills and mechanical issues with Cardium wells have rattled investors and management still has some work ahead to deliver on 2014 asset sale goals. On balance I see less execution risk at Baytex (NYSE:BTE) for investors looking for smaller E&P companies with sizable dividends, but Lightstream's relative underperformance has left it looking quite a bit cheaper.

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Lightstream Resources Up, Down, And All Around

Seeking Alpha: Baytex Energy Is Following A Good Plan

Quite a bit has changed at Baytex Energy (NYSE:BTE) since I last wrote about the company in December of 2013. As I thought it might, the company did in fact agree to a sale of its North Dakota Bakken acreage and also acquired new acreage. The surprise was where the company bought - instead of expanding its high-return heavy oil acreage, the company acquired some very quality acreage in the Texas Eagle Ford. Although that Eagle Ford acreage didn't come cheap, Baytex has diversified its production base, acquired exposure to a high-quality growth play, and improved its overall position. Baytex still isn't the cheapest oil stock out there, but the company relatively lower-risk asset base and high yield still make it a name worth considering.

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Baytex Energy Is Following A Good Plan

Seeking Alpha: Down For The Year, Baytex Energy Not Exactly Cheap Yet

This has been an interesting year for Baytex Energy (BTE). This Canadian heavy oil specialist has been doing well with production and drilling, and the company's capital spending guidance for 2014 suggests more profitable growth on the way. At the same time, differentials have been fairly benign and could get better, while increasing use of rail offers a good hedge.

The only real issue is one of valuation. Baytex's qualities are well-known, from its above-average dividend payout (a legacy of its days as a CanRoy) to its high-quality Peace River asset. Even though the shares are down about 10% year-to-date, the shares still aren't all that cheap on an EV/EBITDA basis. Looking at a long-term NAV, though, I think the investment case is stronger for Baytex and that suggests to me that patient investors may yet want to consider this name.

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Down For The Year, Baytex Energy Not Exactly Cheap Yet