G&M - Not all analysts think alike...... but they all seem to recognize quality when they see it in spite of price volatility (my comment)
Tamarack Valley Energy Ltd. (
) continues to offer investors
“a long runway for top-decile inventory,” according to Raymond James analyst Jeremy McCrea.
However, its 2023 budget, released before the bell on Wednesday, indicates a “more modest” growth rate than what he had anticipated, leading him to lower his recommendation for its shares to “outperform” from “strong buy” previously.
“TVE continues to execute on two of the most attractive plays in Canada focusing primarily on its Clearwater and Charlie Lake assets,” said Mr. McCrea. “With the company announcing its formal budget, investors can expect to see a continued disciplined growth strategy over the near term, coupled with a meaningful return of capital (with both higher dividend payments and buybacks to come as debt is repaid). TVE reiterated its focus on generating sustainable free cash flows followed by various steps to reduce costs in the long-run. As detailed in the budget, waterflood initiatives and investing in various infrastructure projects will aid towards that goal.”
Tamarack Valley predicts annual production of 68,000 to 72,000 barrels of oil equivalent per day, unchanged from its preliminary guidance announced in September, however its capital budget rose 6 per cent to a range of $425-million to $475-million.
We still expect to see further shareholder friendly items appearing as the company restated prior debt target goals, however with the volatility in commodity prices recently, these goals may take longer to achieve,” the analyst said.
He trimmed his target for the Calgary-based company’s shares to $6 from $6.50. The current average is $7.33.
Elsewhere, other analysts making changes include:
* Stifel’s Cody Kwong to $6.50 from $6.25 with a “buy” rating.
* Cormark Securities’ Garett Ursu to $6 from $6.50 with a “buy” rating.