Twin Butte Energy Ltd TBTEF

from TDWaterhouse

[blondeBond]

of all the banks, these guys have the weakest O&G analysts IMO:

Q4 Results Mixed: Operational Focus Transitioning for the Better

Event: Releases Q4 Results & YE-2014 Reserves

Impact: MIXED; Weak production in Q4/14 and reserve results offset by cash cost savings going forward. TD Investment Conclusion We believe that the market will likely focus on the production miss in Q4 and the large negative revision to technical reserves. However, the shortfall in production can largely be attributed to a prior-period adjustment, and the negative reserve revision primarily reflects the transition away from vertical heavy oil drilling. In spite of what is clearly a challenging commodity price environment for a low-margin heavy oil producer, the company has made positive strides over the past year to diversify its production towards medium gravity crude at Provost and has demonstrated strong horizontal well results in the region.
Looking forward, we have revised down our royalty and G&A cost assumptions, while tweaking our realized pricing estimates. Given its relatively low-margin business, modest improvements in these areas have a large impact on CFPS. These changes result in an increase in our target price to $0.80 (from $0.65). Our HOLD rating is unchanged.