CIBCI'm a CIBC client and can't locate the report previously mentioned, however, I also saw a BNN clip yesterday that highlighted which energy companies were in good shape even with a low oil price. RMP was on that list along with the likes of Arc Energy, Raging River and Whitecap. Below is the last CIBC report I can find for RMP (dated 14 May) and at that time, they had a $4.00 target. GLTA
RMP Energy Inc.
Strong Cash Flow For Q1/15
What's The Event
RMP reported solid Q1/15 cash flow on pre-disclosed production.
Production came in at 12,245 Boe/d (47% liquids) which was in line
with the 12,250 Boe/d (47% liquid) that we carried based on the
pre-disclosed number. That said, cash flow of $25.6 MM
($0.20/share) was 7% better than our $23.9 MM ($0.19/share)
estimate and consensus of $0.19/share. The drivers for the beat
were stronger-than-expected realized pricing and better
performance on royalties, G&A and interest costs.
The key catalyst in our view is continued successes stepping out at
Waskahigan (see our April 16 comment for more information -
https://researchcentral.cibcwm.com/equitiesweb/cds?ID=135458&T
YPE=PDF) with drilling starting-up in June and the delineation of the
southwest portion of Ante Creek starting in Q4/15. The company will
also get drilling on the new core lands (32 net sections) this coming
winter and is also evaluating EOR schemes for Ante Creek with the
potential for a pilot as early as Q1/16.
Implications
We have made minor changes to our model post the quarter. We
believe the company is in solid financial position but are looking for
more delineation success to better understand the next leg of
growth in the story. We should get a better understanding in the
second half of the year.