Upgrade Stifel analyst Cody Kwong raised his Whitecap Resources Inc. target to $13 from $11.25, keeping a “buy” rating. The average is $11.98.
“Whitecap came out with its 2021 year-end reserves which, in general, were slightly better than 3-year averages on an FD&A/recycle ratio front, thanks to opportunistic acquisitions and an improved netback through rebounding crude oil prices,” he said. “Also detailed in this update were 4Q21 volumes that were modestly ahead of consensus expectations while capital investment was inline. While no meaningful changes to our proforma view, refreshing our outlook on today’s strip pricing shows a compelling return of capital outlook that we expect to see tangibility following a busy 1Q22. As such, we are increasing our target price ... and urge investors take a second look at our FCF forecast that frames our BUY recommendation.”