TSXV:CEN.H - Post by User
Post by
retiredcfon Jan 22, 2013 10:34am
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Post# 20871602
Target Raised
Target Raised by CIBC in this morning's report. CEN is rated as a Sector Outperform. GLTA
| Coastal Energy Company Increasing Target On Price Deck Change, Continue To See Significant Potential |
| ? We updated our model with our new price deck and adjusted our production in line with management forecasts. As a result, we increased our NAV-based PT from C$22.50 to C$24.50 in the earnings revision report published on January 21. CEN trades at 4.3x 2013E EV/DACF (4.6x 2013E P/CF). ? Although CEN has provided very good returns to shareholders over the last two years (32% over the last year and 209% over the last two years), we still believe that there is good potential for upside from the current price. ? We like CEN as it is well capitalized with an estimated 49% Y/Y production growth in 2013, while generating $234 million in free cash flow. It has a 12.4 year RLI, based on 2013 production and YE11 reserves, generating strong netbacks ($66/Boe F2013) with significant exploration upside. ? CEN owns 100% of the Songkhla Basin and has another 16-17 years left on its production licenses. Management plans an active E&D program in 2013 and is well funded to continue exploring the basin for years to come. Statistically, significant volumes of oil remain to be found in the basin |