Energy
Friday, July 26th, 2024 1:37 pm EDT
Key Points
- Analyst Share Price Targets Raised: At least three analysts increased their share price targets for Athabasca Oil following its earnings, with new targets set by ATB Capital Markets, National Bank of Canada, and TD Cowen.
- Positive Quarterly Results: Athabasca Oil’s second-quarter production and cash flow exceeded estimates, with cash flow reaching $165.7 million compared to the consensus of $155 million. Analysts view the quarterly results positively.
- Updated Guidance for 2024: Athabasca Oil raised its 2024 corporate production guidance to 36-37 mboe/d (from 35-36 mboe/d) and increased its capex guidance to $275 million (from $217 million). The average price target is now $6.56, up from $6.19 a month ago.
The Globe and Mail reports in its Friday edition that at least three analysts raised their share price targets on Athabasca Oil following its earnings Wednesday night. The Globe’s Darcy Keith writes in the Eye Onsa Equities column that ATB Capital Markets raised its share target to $7.50 from $7. National Bank of Canada raised its target to $7.5 from $7. TD Cowen raised its target to $6 from $5.5. ATB analysts Patrick J. O’Rourke says, “Overall, we view the quarterly results as positive.” He reiterated his “outperform” recommendation for Athabasca Oil. He notes that second quarter production was modestly ahead of estimates, and cash flow “notably ahead” at $165.7-million versus the consensus at $155-million. Athabasca Oil also raised its 2024 corporate production guidance to 36 to 37 mboe/d (from 35 to 36 mboe/d prior) and capex guidance to $275-million (from $217-million). The average price target is now $6.56, up from $6.19 a month ago. The Globe reported on May 1 that National Bank Financial analyst Dan Payne said Athabasca had established a very strong and streamlined base of operations in its thermal oil and light oil businesses. He rated Athabasca “sector perform,.” It was then worth $4.66.
