Oct. 14 (Bloomberg) -- Canadian energy producers NuVista Energy Ltd., Pengrowth Energy Trust and Peyto Energy Trust may be takeover targets because they are relatively cheap compared with their peers, according to Peters & Co., a Calgary-based energy brokerage.

These producers, as well as Paramount Energy Trust, have so-called recycle ratios above the peer group median of 1.3, Peters said in an e-mailed note. The ratio is calculated by dividing a company’s expected 2010 cash flow per-barrel equivalent by its enterprise value per-barrel equivalent.

“From an acquirer’s viewpoint, desirable entities possess above average cash-flow generating capabilities and below average current valuation levels,” Peters said. “NuVista, Paramount, Pengrowth, and Peyto currently have implied recycle ratios which are above the peer group median.”

PetroBakken Energy Ltd., Crescent Point Energy Corp. and NAL Oil & Gas Trust are among the producers with the lowest implied recycle ratios, allowing them to “use their valuation” to become possible buyers, Peters also said.

NAL yesterday agreed to buy Breaker Energy Ltd. for about C$310 million ($301.7 million) in stock to lift output and help with conversion to a corporation. In August, Daylight Resources Trust made a C$532 million offer for Highpine Oil & Gas Ltd. to boost oil output after gas prices fell.

To contact the reporter on this story: Sonja Franklin in Calgary at sfranklin6@bloomberg.net

Last Updated: October 14, 2009 14:25 EDT