Senex Energy Ltd (ASX: SXY) is quite possibly the best ASX listed energy company available right now. It also seems to have been overlooked by investors.
It's a bold claim to make, but one with weight given the company's reliable performance and strong growth which sets Senex apart from the throng of oil and gas companies on the S&P / ASX All Ordinaries Index (Index: ^AORD) (ASX: XAO).
Delivering the goods
Senex is focused on the Cooper Basin and has made considerable progress growing reserves and production over the last four years.
Since 2011 net oil production has grown from 0.17 million barrels of oil equivalent (mmobe) to 1.38 mmobe for the full financial year FY14, an increase of over 700%.
This includes the successful completion of a bold 30 well drilling program in FY2014 which achieved a reserves replacement ratio of 327% on top of the strong increase in production.
Full year revenue for FY14 was also up 24.5% to $170.9 million. This success, while a company wide effort, is the product of a quality management team, a key reason I recently labelled Senex Energy one of four companies I would trust with my money today.
Long-term potential
The growth is not short term either. Although oil production growth may slow, Senex's long-term prospects for natural gas sales, especially to the east-coast market, are the main focus.
The company's tie-ups with Origin Energy Limited (ASX: ORG) and Beach Energy Limited (ASX: BPT) are smart strategic moves to fund development costs and spread risk.
Cheap as
Shares in Senex have dropped almost 9% in the last 12 months and can now be picked up for just $0.66 or 12 times earnings. This compares to around 17 times earnings for energy giant Woodside Petroleum Limited (ASX: WPL).
And although energy companies often trade at lower price multiples than other industries due to the extensive capital requirements, Senex in my view commands a premium given its quality operating performance, funding and long-term growth potential.
