Tamarack Valley Energy Ltd T.TVE

Stifel

[Dibah420]

Tamarack Valley Energy Buy Rating Reiterated at Stifel FirstEnergy; Price Target Trimmed to C$6.00

 

30 Sep 2022 09:53 ET

09:53 AM EDT, 09/30/2022 (MT Newswires) -- Stifel FirstEnergy on Friday maintained its buy rating on the shares of Tamarack Valley Energy (TVE.TO) while trimming its price target to C$6.00 from C$6.75 as the investment bank assessed the impact of the Western Canadian oil and gas producer's C$1.43 billion acquisition of Deltastream Energy announced earlier this month.

"Tamarack Valley announced the acquisition of Clearwater player Deltastream for proceeds of $1.425 billion consisting of cash and TVE shares," analyst Cody Kwong noted. "The Deltastream addition will provide an anticipated 2023 production increase of 23,000 boe/d (94% liquids), making TVE the largest producer in the Clearwater. At the time of the acquisition's announcement, an additional $500 mm of EBITDA was expected to be generated in 2023e at current strip. Our updated estimates frame meaningful per share accretion (19% PPS, 20% CFPS, 40% FCFPS) offset by a return of capital increase schedule being slightly delayed on the account of higher debt levels taken on in the transaction. We reiterate our BUY rating with a decreased target price of $6.00/sh, on the account of oil prices fading since our last update."