Energy
Tuesday, May 14th, 2024 6:08 pm EDT
Key Points
The Globe and Mail reports in its Tuesday edition that Desjardins analyst Chris MacCulloch has reaffirmed Crescent Point Energy as his top pick in the small/mid-cap oil space. The Globe’s David Leeder writes that Mr. MacCulloch raised his share target to $15 from $14, while keeping his “buy” call intact. Analysts on average target the shares at $14.64. Mr. MacCulloch says in a note: “The company’s positive momentum continued in 1Q24 through strong operational performance and further advancement toward its $2.2-billion soft net debt target. On the latter, progress was achieved through last week’s attractively priced $600-million disposition of its Battrum and Flat Lake assets, bringing the company within close reach of the $750-million disposition target. … We expect the remainder to come from infrastructure transactions, potentially including assets acquired through the Hammerhead Energy acquisition, as previously hinted by management. However, we also would not be surprised to see some of the proceeds reinvested into the Montney, potentially through the addition of a fourth drilling rig, although this will be partially contingent upon further analysis on the impact of optimized drilling and completion design.”