logo
  Join        Login             Stock Quote

C&C Energia (CZE) Upgraded to 'Sector Outperformer' by CIBC, PT Lifted To C$10

 November 13, 2012 02:36 PM


(By Balaseshan) CIBC World Markets Inc. analyst Ian Macqueen upgraded the rating of C&C Energia Ltd. (TSE: CZE) to "sector outperformer" from "sector performer" and increased his price target to C$10 from C$8.75.

The company's Q3 2012 average production and sales were pre-announced at 11,424 Bbls/d and 13,639 Bbls/d, respectively, but actual sales were 14,445 Bbls/d, as the company sold additional inventory, Macqueen noted. As a result, Q3 2012 cash flow per share was $1.00, above his $0.87 estimate and consensus of $0.85.

Management forecasts 2012 average production at 10,800 Bbls/d, slightly below the analyst's estimate of 10,900 Bbls/d. However, management expects to reduce oil inventories from 207 MBbls at September 30 to 100-125 MBbls by year-end 2012, which could add about 1,000 Bbls/d in sales volumes in Q4 2012.

For 2013, guidance has been set at 11.8-12.1 MBbls/d, representing a 9 percent to 12 percent increase year-over-year. Macqueen has included three recent discoveries in his production model (Saimiri, Heridia & Guacharrios), leading to an increase in his 2013 production forecast from 10.3 MBbls/d to 11.8 MBbls/d.

The analyst said CZE is gaining some operational momentum. Changes to his model have resulted in a 14 percent increase in his risked net asset value (NAV). CZE is trading well below core NAV (C$8.43/share) and at 2.6 times 2013 cash flow.

The brokerage raised its 2012 cash flow per share estimate to $2.68 from $2.39 and its 2013 estimate to $2.51 from $2.10.

CZE is trading down 2.06 percent  at C$6.65 on Tuesday.

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 imageMBIA Inc. (MBI) : BTI's $12 a Tough Task

MBIA Inc. (NYSE:MBI) is doing well on a day stocks are struggling The guarantee insurance company is the read on...

article imageUrban Outfitters, Inc. (URBN) Q2 Earnings Preview: A Snug Fit

Urban Outfitters, Inc. (NASDAQ:URBN) will hold a webcast to discuss its second quarter of fiscal-year 2015 read on...

article imageEstee Lauder Companies Inc. (EL) Q4 Earnings Preview: Options Player Betting On EL’s EPS Looking Pretty

Estee Lauder Companies Inc. (NYSE:EL) will release fiscal 2014 fourth quarter and full year financial read on...

article imageHerbalife Ltd. (HLF): 3 Reasons To Pay Attention to Recent Insider Buying

Well, well, well… it looks as if boardroom buyers viewed the recent selloff as an opportunity to buy. read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

Recent Articles by Balaseshan
More Articles on: Oils/Energy , Americas



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.