They have a $9.00 PT.
Tudor Pickering Holt on Advantage Energy Subsidiary Entropy's $300 Million Initial Financing
09:02 AM EST, 01/04/2022 (MT Newswires) -- Tudor Pickering Holt & Co. on Monday noted that Advantage Energy Ltd. (AAV.TO) subsidiary Entropy secured $300 million in initial financing late last week to fund near-term growth plans, with closing expected during the first quarter.
TPH said that Entropy has entered into eight memoranda of understanding with various counterparties, with its project pipeline now exceeding 1.8 million tonnes per year and over $800 million in estimated net capital expenditures.
AAV's estimated $50/tonne breakeven carbon price for capture, transport, and storage remains unchanged, with typical operating costs in the range of $15 to $20 per tonne, according to TPH.
TPH said that while it views the $300 million financing as a step in the right direction for Entropy, it still awaits clarity on Canada's proposed carbon credit framework, with the investment tax credit expected to become available in 2022.
Lastly, Entropy's first carbon capture storage project at AAV's Glacier gas processing facility is progressing on time and on budget, with an expected startup in early second quarter and total installed cost of about $27 million.