Leggett & Platt Inc T.LEG

Primary Symbol: LEG

Consumer Cyclical

Leggett & Platt, Incorporated is a manufacturer that conceives, designs, and produces a range of engineered components and products found in many homes and automobiles. The Company’s segments include Bedding Products, Specialized Products and Furniture, Flooring & Textile Products. Bedding Products segment supplies a variety of components and machinery used by bedding manufacturers in the production and assembly of their finished products, as well as produces private label finished mattresses for bedding brands. Specialized Products segment supplies lumbar support systems, seat suspension systems, motors and actuators, and control cables used by automotive manufacturers. It also produces and distribute tubing and tube assemblies for the aerospace industry and engineered hydraulic cylinders used in the material-handling and construction industries. Furniture, Flooring & Textile Products segment supplies a range of components for residential and work furniture manufacturers.

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Leggett & Platt Inc

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Post by retiredcfon Jan 09, 2013 10:15am

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Post# 20814416

CIBC World Markets

Here's yesterday's report. Stock is rated Sector Outperform with a target of $9.25. GLTA

Legacy Oil + Gas Inc.

2013 Capital Budget; Continued Improvement In Capital Efficiencies Expected

? In 2013, Legacy plans to spend $290 MM with volumes averaging 17,900 Boe/d (89% liquids), which is in line with the company's 2012 exit rate. This implies overall growth of 10% this year and an increase in liquids weighting from ~86% in 2012 to 89% in 2013 (exiting 2013 at 91%).

? The Williston Basin will be a bigger focus area for the company, consuming 84% of the budget (up from 76% in 2012). This will drive another year of improving capital efficiencies, which we expect to come down by 9% to ~$41,000/Boe/d from ~$45,000/Boe/d in 2012.

? Given the higher forecast liquids weighting (our prior estimate was 86%) and higher spending, we are increasing our 2013 CFPS estimate by 10% to $1.55, while our D/CF estimate falls to 2.3x (note these number are not as strong as Legacy's forecast as we are using conservative oil prices).

? Legacy trades at a Price to Risked NAV ratio of 78% and a 2013E EV/DACF multiple of 6.2x vs. the group at 85% and 7.1x, respectively. We believe capital efficiencies will continue to improve over the coming years and Legacy has strong potential to grow with cash flow starting in 2014.

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