NGL is rated Sector Outperform with a $6.00 price target. GLTA



Angle Energy Inc.

Q3/12 Total Volumes Weak But Oil Growth In Line

? Angle reported soft quarterly production of 14,200-14,400 Boe/d vs. our expectation of 15,400 Boe/d as volumes were impacted by facility issues and tie-in delays. However, oil/condensate volumes were more in line with our expectations at ~3,150 Bbl/d vs. our 3,234 Bbl/d.

? While the quarter was weak, the last two months of the year are expected to be much stronger with production estimated to be at 15,700 Boe/d (3,650 Bbl/d of light oil/condensate) at the end of Oct. With a Q4 average of 15,000 Boe/d, Angle will be able to meet the lower end of guidance.

? New results from the southern and western portions of Angle's land block in the Cardium were released. The rates were limited, but the two wells that were equipped averaged 249 Bbl/d (not including gas or NGLs), which is a decent result in our view. Wells have cost $3.2 MM vs. $3.5 MM budgeted.

? Angle trades at 4.3x 2013E EV/DACF and at 64% of Risked NAV, versus its peers at 6.8x and 84% of NAV. We believe that Angle's solid growth in oil has been overshadowed by a gas business that has been hurt by weak prices (particularly NGLs). We believe there is great value at these prices