Given that NGL beat the estimates and NG is up over 5% today. I'm surprised that the stock isn't up more this morning. CIBC have a $6.00 price target. GLTA
Angle Energy Inc.
Q2/12 Results Above Expectations; Looking For Big Oil Reserves Growth At YE
? Production of 15,569 Boe/d was slightly ahead of our 15,425 Boe/d estimate. This was above the company's anticipated range of 15,300- 15,500 Boe/d as per the company's previous disclosure. CFPS came in at
.25, beating the Street's (and our)
? Operational results were slim as Angle already released an update on June 27 (the link to the published report is on page 4). We do note that field production is 15,300 Boe/d, below June's 16,000 Boe/d. The reason is due to initial flush Cardium production and lack of new tie-ins in the last month.
? We strongly believe Angle is well poised for solid reserves growth this year given the success of the Harmattan Cardium oil play. Assuming that the company gets 1 to 2 new locations for each well drilled, Angle could see oil reserves increase 41% to 83% over 2011 bookings - very solid growth.
? Angle trades at a P/RNAV of 60% and a 2013E EV/DACF of 4.0x (vs. the group at 80% and 5.9x). We believe that the company offers exposure to a strong oil resource play, which is evidenced by low F&D costs and competitive returns. We maintain our Sector Outperformer rating