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Analyst Raises Q3/19 Production Estimates Texas-Based Oil & Gas Company

Streetwise Reports, Streetwise Reports
0 Comments| September 9, 2019

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The revisions and the reasons for them are discussed in a ROTH Capital Partners report.


In an Aug. 27 research note, analyst John White reported that ROTH Capital Partners raised its Q3/19 production estimate for Lonestar Resources US Inc. (LONE:NASDAQ), "based on guidance which is supported by continuing strong well completions."

ROTH also revised its oil and gas price deck, which led to it lowering its price target on Buy-rated Lonestar to $8 per share from $11 per share. The energy company's current share price is $2.66.

White detailed ROTH's changes to its model on Lonestar, resulting from the energy company having been "consistently guiding production higher and operating costs lower."

ROTH increased its Q3/19 production projection by 11%, to 17,170 barrels of oil equivalent per day (17,170 boe/day) from 15,505 boe/day. ROTH also raised its projected cash flow per share for Q3/19 to $1.02, up from $0.84. Its new EBITDA estimate is $35 million, up from $32.9 million.

As for changes to its near- and medium-term oil price estimates, ROTH lowered its West Texas Intermediate (WTE) estimates for Q3/19 to $56 per barrel ($56/bbl) from $57 and for Q4/19, to $54/bbl from $57, White relayed.

For the Henry Hub price in Q3/19, ROTH predicts $2.20 per million British thermal units (2.20/MMBtu) versus $2.20 and in Q4/19, $2.25/MMBtu versus $2.40.

As for 2020 forecasts, ROTH now expects a WTI crude oil price of $52.25/bbl versus $54.75 and a Henry Hub price of $2.40/MMBtu as opposed to $2.49.

ROTH has a Buy rating on Lonestar Resources.

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from ROTH Capital Partners, Lonestar Resources US Inc., Company Note, August 27, 2019

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

ROTH makes a market in shares of Lonestar Resources US Inc. and as such, buys and sells from customers on a principal basis.

Shares of Lonestar Resources US Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

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