Another Preferred Stock: PetroQuest Energy Inc., 6.875% Series B Cumulative Convertible Perpetual Preferred Stock ($PQ, $PTQEP)

The PetroQuest Energy Inc., 6.875% Series B Cumulative Convertible Perpetual Preferred Stock, which currently trades at ~$34 (68% of par) to yield roughly 10 percent. Conversion price is $14.52, making parity $9.87 vs the current common share price of $5.31.

They have operations in Oklahoma, Texas, the Gulf Coast Basin, Arkansas and Wyoming and MRQ production was roughly 58% oil and NGLs by revenue. There's a May presentation [PDF] you can read.

Market cap is $330 million. There's $10 million in bank debt and $150 million in bonds that trade at a premium to yield 8.9%. The preferreds have face value of $74.75 million. Enterprise value is $565 million and EV through the preferreds is $235 million.

The MRQ EBITDA was roughly $20 million, or $80 million annualized, which gives EV/EBITDA of 7x and Debt+pref/EBITDA of only 3x.

Management owns 12% which is pretty good for a small E&P, and institutions own an additional 77%.