Angle Energy Inc ANGZF

first energy--angle is their top pick

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while increasing our H2’10 forecast results in a largely 
unchanged average volume outlook of 9,400 Boe/d. 
Elevating our 2010 capital spending inputs modestly to 
$105.0 MM carry more production related implications 
for 2011. 
? Increasing our corporate liquids contribution percent- 
ages that grow to ~50% at year-end helps cash flow 
grow to $75.8 MM or $1.34 per diluted share, an 
increase of 4.5% over our prior thinking. 
? Net debt exiting 2010 is now estimated to be $66.0 MM, 
representing a comfortable 0.6x forward cash flow or 
only 60% of available bank lines. 
Confirmation of success along Angle’s existing 
projects, while adding more potential prospects 
through two new emerging light oil plays, Angle has 
built up an enviable drilling inventory that will serve it 
well as it transitions to our Mid Cap group in 2010. We 
anticipate this eventual metamorphosis will ultimately 
lead to improved liquidity and a premium valuation for 
Angle shares. 
? With this, we reaffirm our Top Pick ranking and 
increase our target price to $12.00 per share, which is 
reflective of a 6.4x 2011e DACFM or $64,200 per 
flowing Boe.