Broker updatei3 Energy attractively geared to higher gas prices, says Stifel
update from broker Stifel today following the confirmation of the 2024 capital budget.
“Specifically, we have reduced and deferred drilling activity into H2/24, which results in 2024 production within the 18-19,000 [barrels of oil per day] guidance range, albeit towards the top end.
“We incorporate higher capex per well, reflecting the increased complexity of the 2024 programme of wells.
“Assuming some continuation of this results in our NAV falling to 28p (from 30p).
“Overall we remain positive. The shares trade at a considerable discount to both peers and NAV.
“Whilst the prevailing low gas price means that growth is on hold, the business remains funded, and we believe is poised to strongly re-rate on better prices.”