logo
  Join        Login             Stock Quote

Parex Resources Estimates Lifted By CIBC After Q4, 'Sector Performer' Maintained

 March 15, 2012 03:08 PM


CIBC World Markets Inc. raised its estimates for Parex Resources Inc. (TSE:PXT) after the company's fourth quarter results. The brokerage maintained its "Sector Performer" rating and $11 price target on shares of PXT.

PXT reported its Q4 results with production and sales in line at 11,342 Bbl/d and 10,233 Bbl/d, respectively (both prereleased). The sales volume does not include about 281.5 MBbls delivered in Q4 and largely sold in January and February 2012. Current production is 12,500 Bbl/d.

Q4 cash flow per share was $0.53, above CIBC's $0.48 estimate and consensus of $0.45 due to higher realized prices ($102.15/Bbl versus the firm's $96.06/Bbl estimate) and lower-than-expected costs (combined op and transport costs of $22.87/Bbl versus $25.16/Bbl estimate).

[Related -Chart Says This Retailer's Comeback Isn't Finished]

Q4 netbacks were $71.24/Bbl, up 6% sequential on higher realized pricing. Production expenses were up 13% sequential to $6.97/Bbl due to increased costs associated with initiating production at Sulawesi.

Unfortunately, stellar 2011 production growth came at the expense of reserves growth. The company is heavily dependent on exploration success to drive future growth. A 15+ well 2012 exploration program will be funded from cash flow.

The brokerage increased its 2012 cash flow per share estimate to $2.03 from $1.89 and its 2013 estimate to $1.09 from $0.99.

Parex Resources, formerly 1485196 Alberta Ltd., is a development-stage company engaged in the oil and natural gas exploration and development business in Trinidad and Tobago and Colombia.

PXT is trading down 1.02% at $6.82 on Thursday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.