Another Upgrade 09:43 AM EST, 01/24/2022 (MT Newswires) -- Tudor, Pickering and Holt on Monday reiterated its buy rating on the shares of Enerplus (ERF.TO) while boosting its target price to C$20.00 from C$13.50 ahead of the oil and gas producer's fourth-quarter results.
"Modeling in-line Q4 results at 127mboepd total production (Street 126) / 71.6mbpd oil production (Street 71.2) with C$104MM capex (latest Street estimates in-line), with improved LOE (Lease Operating Expense) balancing vs. an increase in royalties q/q to put our pre-WC cash flow estimate at C$303MM (Street C$316MM), good for TPHe C$199MM FCF for the quarter, of which C$143MM went to share repurchases," analyst Jeoffrey Lambujon said in a release. " ... On operations, with Q4 TILs (well turned to sales) executed as planned in early Nov and seasonality keeping Q1 wells weighted to late March, we continue to model production declining sequentially in Q1 before resuming growth through Q3. For FY'22, we model 122mboepd, with our C$500MM capex unchanged given ERF has secured a significant portion of service costs for the year. With market rumors on Marcellus M&A, we'd note ERF's Marcellus position (~192mmcf/d reported Q3'21, ~33k net acres) could be a source of proceeds (TPHe ~$300MM for PDP value), for further debt reduction (TPHe implied C$750MM net debt level achievable by end of Q1'22) and/or shareholder returns."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 13.39, Change: -0.37, Percent Change: -2.69