GLTALongs. Burn the shorts. 11:03 AM EDT, 04/22/2022 (MT Newswires) -- Tudor, Pickering and Holt on Friday reiterated its buy rating on the shares of Crescent Point Energy (CPG.TO) and bumped its price target to C$12.00 from C$11.00 ahead of the oil and gas producer's first-quarter results.
"Our updated model ahead of first quarter earnings has our cash flow forecasts sitting in-line with latest Street estimates on in-line volumes," analyst Matt Murphy noted. "For the quarter, we model production of 132mboepd (Street 133mboepd), as we bake in the impacts of a slow start to the year on the activity front owing to cold weather conditions, with cash flow of C$0.93/shr in-line with the Street. On the capital front, we model C$243MM for the quarter (Street C$240MM) - good for ~C$310MM in pre-dividend free cash flow as de-leveraging activities continue to progress towards targeted levels in the C$1.3B range which we model, on strip pricing, largely in the bag by mid-year. To that end, we'll be looking for an updated outlook on the company's capital allocation framework going forward, with ample free cash on tap on our numbers to accelerate shareholder returns beyond our currently modeled ~8% for 2022. Lastly, the outlook for cash taxability has been broadly topical across our Canadian coverage names, with CPG remaining well-positioned in that regard, likely more so a 2024 conversation than 2023 at present in contrast to peers which we expect to face an uptick in cash taxes in the 2023 timeframe."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 9.12, Change: -0.27, Percent Change: -2.88