Post by
greener12345 on Apr 17, 2010 3:37pm
first energy--angle is their top pick
while increasing our H2’10 forecast results in a largely
unchanged average volume outlook of 9,400 Boe/d.
Elevating our 2010 capital spending inputs modestly to
$105.0 MM carry more production related implications
for 2011.
? Increasing our corporate liquids contribution percent-
ages that grow to ~50% at year-end helps cash flow
grow to $75.8 MM or $1.34 per diluted share, an
increase of 4.5% over our prior thinking.
? Net debt exiting 2010 is now estimated to be $66.0 MM,
representing a comfortable 0.6x forward cash flow or
only 60% of available bank lines.
Confirmation of success along Angle’s existing
projects, while adding more potential prospects
through two new emerging light oil plays, Angle has
built up an enviable drilling inventory that will serve it
well as it transitions to our Mid Cap group in 2010. We
anticipate this eventual metamorphosis will ultimately
lead to improved liquidity and a premium valuation for
Angle shares.
? With this, we reaffirm our Top Pick ranking and
increase our target price to $12.00 per share, which is
reflective of a 6.4x 2011e DACFM or $64,200 per
flowing Boe.