The Energy Report

Equal Energy Ltd. TICKER: EQU:TSX; EQU:NYSE Equal Energy Ltd. is a Canadian-based oil and gas exploration and production company with U.S. operations in Oklahoma. Its diverse portfolio includes producing properties in Alberta, British Columbia, Saskatchewan and Oklahoma. In addition to its extensive inventory of drilling locations in the Hunton liquids-rich natural gas play, Equal boasts two new oil plays in the Cardium and Viking formations of central Alberta. Crude oil and natural gas liquids comprise 55% of Equal's production and natural gas accounts for 45%.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Comments:

Alistair Toward, PI Financial (5/9/13) "Equal Energy Ltd. has steady production and is undervalued. . .the company offers exposure to improving liquids price. . .we reiterate our Buy rating."

Morning Coffee (3/26/13) "On Feb. 27, 2013, Equal Energy Ltd.'s board of directors received a letter from Montclair Energy LLC in which Montclair proposed to acquire all of the current outstanding shares of common stock of Equal Energy for $4/share in cash. . .the price offered for the company represents a 28% premium over the 20-day, volume-weighted average price of its common shares on the New York Stock Exchange for the 20-trading-day period preceding the date of Montclair's letter."

Nav Malik, Octagon Capital Corporation (3/26/13) "Yesterday, Montclair Energy LLC announced that it had made an unsolicited proposal to acquire Equal Energy Ltd. for US$4/share in cash. . .Montclair's offer represents reasonable valuation metrics, in our opinion; the offer values Equal at approximately $190M (including $22M of net debt), and represents a 28% premium to the 20‐day volume weighted average price on the NYSE. . .we are increasing our target price to $4 from $3.75 to reflect Montclair's proposal. . .while there is no certainty that a transaction will be consummated, we believe the offer price is fair in the context of our commodity price outlook."

Alistair Toward, PI Financial (3/25/13) "Montclair's acquisition interest points out the obvious…Equal Energy Inc. is undervalued. . .Montclair, a private company, issued a press release this morning indicating its interest by making a $4 bid for all outstanding shares of Equal Energy. . .we are not complaining about the extra publicity that this release brings to the company. The more attention paid, the greater the likelihood that the aforementioned valuation gap will be reduced or eliminated. . .we reiterate our Buy recommendation with a $6 target."

The Energy Report Interview with Tim Murray (2/12/13) "One name in my coverage universe has recently moved to the dividend model: Equal Energy Ltd. Moving to a dividend has attracted new yield-hunger investors. . .dividend E&Ps are receiving higher multiples than their peers, and this advantage allows them to be very active in acquiring assets, which is a key component for the dividend model.

. . .Equal sold all of its Canadian assets, so it's a U.S. company focused on the Hunton play in Oklahoma. On the back end of selling those assets, it declared a dividend and now has a squeaky-clean balance sheet. We estimate a year-end 2012 working capital surplus of about $20M. . .we expect propane prices at Conway to revert back to more typical levels in late 2013 or early 2014, so the dividend model should work in the long term. Due to the excellent balance sheet, we see no dividend risk this year. . .I expect Equal to make what we call 'bolt-on' acquisitions, where it buys a couple of sections of land or a small private company in its key Hunton play." More >

Equal Energy Ltd. Content

Corporate Presentation (2/28/13)

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