GBC AG: Saturn Oil & Gas Inc. | Rating: BUY
Original-Research: Saturn Oil & Gas Inc. - von GBC AG
Einstufung von GBC AG zu Saturn Oil & Gas Inc.
Unternehmen: Saturn Oil & Gas Inc.
ISIN: CA80412L8832
Anlass der Studie: Research Report (Anno)
Empfehlung: BUY
Kursziel: 12.17 CAD
Kursziel auf Sicht von: 31/12/2022
Letzte Ratingänderung:
Analyst: Julien Desrosiers; Felix Haugg
Record quarter production 6,970 boe/d
Record quarter Free Cash Flow $9.5M CAD
Record production. The company has produced 6,970 boe/d during Q3-2021. This represents an increase of 270% over their Q2 results and 1297% over Q3 2020.
Record Free Cash Flow. The company Q3 EBITDA resulted in $17.2M CAD. The company posted a $9.5M CAD positive free cash flow, after capital expenditures, compared to $0.3M CAD in Q3 2020.
Balance sheet discipline. Its lean structure and conservative capital expenditure of $4.5M CAD allows the company to exit Q3 2021 with over $14M CAD cash on hand.
Mature assets. The maturity of the Oxbow asset and low decline rate of 12% gives Saturn Oil & Gas flexibility for future development. There are currently 370 drilling location with certified reserves. Additionally, there is the opportunity for low capex and rapid increase in oil production as brought about by 400 reactivations of non-producing wells.
Hard counter to oil price volatility. The strong hedge against WTI spot price secures debt repayment at the cost of capping a potential increase in revenues. However, it creates revenue stability, easier long-term projections and secures internal funding of growth projects.
Future profitability. Saturn Oil & Gas has incurred $66.8M CAD in 2021 in unrealized non-cash losses on future oil hedging positions. Therefore, in future periods Saturn Oil & Gas is expected to report higher earnings based on increased future production levels (88% of the $66.8M CAD is for 2022- to-2025 derivative contracts)
Market and financier support. The company has completed a share consolidation. With 25.1M shares out and the support of their financier, the company could be looking for more unique acquisition opportunities.
Asset fully integrated. The Q3 results indicate to the markets that the integration of the asset is now complete.
Brighter future. The company is poised and ready for their next development stage. Acquisition or organic growth. The oil price will most definitely guide the next phase for Saturn Oil & Gas.
Based on our DCF model we have raised our price target to 12.17 CAD per share and maintain our BUY rating.
Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/23223.pdf
Kontakt für Rückfragen
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung
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Date and time of completion of this research: 20/12/2021 6:30 pm
Date and time of first distribution: 21/12/2021 10:00 am
Target price valid until: max. 31/12/2022
-------------------übermittelt durch die EQS Group AG.-------------------
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
