11:06 AM EDT, 10/13/2022 (MT Newswires) -- Tudor, Pickering, Holt on Thursday reiterated its hold rating on the shares of Whitecap Resources (WCP.TO) while raising its price target to C$12.00 from C$11.00 ahead of the release of third-quarter results from the Western Canadian oil and gas producer.
"Our updated model ahead of third quarter results has our cash flow estimates edging slightly lower on mark-to-market factors, with few moving pieces otherwise," analyst Matt Murphy noted. "For the quarter, we model volumes at the top-end of the company's 142-144mboepd guide (TPH 144mboepd, Street 143mboepd), with total liquids up q/q towards 101mbpd (liquids weight 70%) driving cash flow of C$0.96/shr vs. recent Street marks in the C$0.90-$0.95/shr range ex-outliers. On capital of C$200MM in the quarter, we estimate pre-dividend FCF of C$400MM, with C$71MM in buybacks executed in the quarter alongside anticipated further debt reduction. Beyond the print, we remain at the high-end of the company's FY'22 guide at C$690MM on capital and, with the company having laid out its expectations of achieving its C$1.8B first net debt target by year-end and a resulting dividend increase, we're anticipating a straightforward update this quarter."
(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: 9.85, Change: +0.19, Percent Change: +1.97