TSXV:CEN.H - Post by User
Post by
retiredcfon Nov 13, 2012 7:51am
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Post# 20592107
CIBC World Markets
CIBC World Markets Here's their reaction to the earnings and obviously does not reflect any takeover speculation.
As for the earlier poster's comment that the smart money has been selling since $10.00, given that the stock has more than doubled since then, a more appropriate wording would be the dumb money has been selling since $10.00. Always ride your winners! GLTA
| Coastal Energy Company Q3/12 - Production In Line, Minor Miss On Cash Flow Due To Inventory Build |
| ? CEN reported Q3/12 production of 21.8 MBoe/d (90% oil) vs. our estimate for 21.9 MBoe/d (89% oil). Production was up 1% q/q despite downtime due to MOPU installations. Realized prices were $101.47/Bbl vs. our expectations for $103.7/Bbl. Royalties were in line at 10.7%. ? Cash flow for the quarter was $78.6 million ($0.67/share) after excluding the effect of the H1/12 tax accrual vs. our estimate for $100 million ($0.84/share). The main difference was the inventory build (1,320 Bbl/d), lower-than-expected oil pricing, and higher-than-expected operating costs. ? We forecast 54% annual production growth between 2012 and 2013 (from 22,112 Boe/d in 2012 to 33,945 Boe/d in 2013) with the addition of a new rig in late November. CEN is planning to drill 27 development and appraisal wells and another seven exploration wells in 2013. ? With owned MOPU's in place, we believe that the stage is set for another high-growth year in 2013. We have updated our forecasts to reflect Q3/12 and we reiterate our SO rating and $22.50 target price |