From Cannacord
Novus Energy* (NVS : TSX-V : $0.87)
Net Change: 0.01, % Change: 1.16%, Volume: 927,676
Possible takeover candidate? Shares of Novus Energy have been active of late as rumours on the Street swirl around the company being a possible takeover candidate. Late last week, the rumour mill began churning faster as chatter indicated that NVS had received two takeover offers, both of which were rejected by the company. Canaccord Genuity Energy Analyst Steve Toth has long commented that he feels Novus will be bought by a bigger entity. In the next coming weeks, it is expected that the company will announce news on its credit facility. It is expected the credit facility will be increased by $5-10 million. Additionally the market is expecting an operational update from the company given its activity over the past few months and an updated corporate presentation with a land map highlighting its newly-acquired acreage in the Provost Viking play. An increased credit facility should be viewed positively by the street as the company will exit the year with net debt of $68 million.
Investors also believe that 2013 Street production estimates will gravitate higher on the back of continued operational success. The Street is currently forecasting 2013 production of 4,277 boe/d versus Toth's estimate of 4,800 boe/d. As a gauge, Toth expects the company to exit 2012 at approximately 4,200 boe/d.