Raised Target Stifel’s Cody Kwong hiked his Headwater Exploration Inc. target to $10 from $8.75 with a “buy” rating. The average is $8.89.
“Headwater released an operational update following an active 1Q24 drilling campaign that does carry positive NAV and inventory implications with new areas/horizons tested in Marten Hills West, West Nipisi, Heart River, Seal and Handel. Early test rates show encouraging signs of commerciality in these new regions, which will need to be confirmed with further production history gathered in the months ahead. Headwater’s base capital program did deliver as expected with 1Q24 volumes tracking consensus at 19,500 boe/d. Keeping our target multiples intact from our last update, but also honouring the recent strength in crude oil prices, we are increasing our target price,” he said.