Another webcast - First Energy Top Pick $15.50https://jetslides.tv/lobby/318
Top Pick Ranking
?? Our target price on C&C Energia is $15.50 per
share, which is based on our risked NAV (12%,
after-tax) estimate of $15.61 per share. Given the
magnitude of the Company’s exploration program,
the conservative risking of the exploration
portfolio, and the conservative 2011e production
guidance, we are of the opinion that there is upside
potential within our estimates. Our ranking on
C&C is Top Pick.
Colombian Peer Group Comparison
?? On nearly every metric, C&C Energia trades at a
discount to the Colombian peer group average.
C&C Energia trades at a 2011e DACF multiple of
4.0x (peer group average is 7.1x), an enterprise
value of US$62,983 per flowing 2011e boe/d (peer
group average of US$107,186 per flowing 2011e
boe/d), a price-to-core NAV ratio of 125% (peer
group average is 169%) and a price-to-risked NAV
of 66% (peer group average is 77%).
?? However, what is most impressive is the Company’s
size relative to its risked and unrisked recoverable
resource. We cannot overstate it enough:
the Company’s exploration upside is second-tonone.
C&C’s adjusted enterprise value to net
risked resource is US
.71/boe (peer group average
is US$3.09/boe) and to net unrisked resource is
US
.17/boe (peer group average is US
.85/boe).
Both metrics indicate a potentially undervalued
exploration portfolio.