Shares in oil and gas producer Senex Energy Ltd (ASX: SXY) have bounced over 7% higher in afternoon trade as investors reacted to the 17% sell-off in shares since it released full-year results just two weeks ago.
Opening at $0.56 on Tuesday morning, shares have traded down from $0.75 a year earlier. Clearly, the $720 million company’s recent FY14 results presentation – which showed a 38% fall in net profit – was enough to spark a selling spree.
Today’s share price jump comes on the back of no company-specific news but against a backdrop which includes a falling oil price. Brent crude fell to 15-month lows on Monday following signs of easing tensions in the Ukraine and the Middle East as well as ongoing signs of a slowing Chinese economy.
However at these prices Senex appears to hold exceptional value and growth potential for long-term investors. With healthy cash flows, quality management, significantly increased reserve levels and a cheap share price, the only thing it doesn’t offer is a dividend!
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Motley Fool Contributor Owen Raszkiewicz owns shares of Senex Energy Ltd.
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