Kiwetinohk shares are largely ignored by the market

But the value is definitely there

Kiwetinohk (KEC.TO) is an interesting mid-capitalization exploration and production company with output divided between oil, gas and NGL in a profitable mix. The company touts itself as an “energy transition” play, pretending CO2 causes climate change and stating its goals include electric power generation from “renewables” as well as Carbon Capture and Storage (CCS). Here is a clip from the company’s website:

The embrace of the non-sensical theory that an “energy transition” is necessary or even worthwhile may explain why serious investors have avoided the stock and why it trades at a deep discount to intrinsic value. Using a modified Black Scholes approach to value its reserves, I find the underlying value of the reserves alone imply a per share value north of CDN$30 compared to a market trading price of CDN$13.25

While the “climate change” nonsense is distracting, the company manages its oil & gas interest well and is worth a place in value investor portfolios. The only real risk over and above commodity prices is if the company directs too much capital to its “climate change” hobby and creates a ton of stranded assets when the climate change hysteria passes into hysteria and leftist leaders admit they were promoting the narrative for political points rather than to “save the planet” which is not under any threat.