Thank you.
PRQ is a small cap oil and gas producer with its primary property located in Alberta. The company has been negatively impacted by weak oil and gas prices. It has strategically shut down some of its wells in response to the pricing environment. The balance sheet has a bit of debt, and generally looks fine. The market weakness and small cap nature of the company increases the risks here. It pays a very high yield at 8% which is well covered by cash from operations over the last twelve months. The CFO payout ratio over this period is 21% so we are not too concerned with the health of this dividend. It is very cheap at 4x trailing earnings and we have concerns on the size and market weakness. However, its dividend is well covered and the extremely cheap valuation makes us consider it an OK small cap sector income name.