Analyst Actions: Credit Suisse Keeps "Outperform" on Gran Tierra; Target at $8.50

By Staff,

Shutterstock photo

Q4/12 Production Below, Cash Flow Ahead: "Q4/12 production, after inventory adjustments, was 17,196 boe/d NAR and below our estimate of 18,922 boe/d NAR. However, cash flow of US$117 mm was higher than our forecast of US$93 mm, primarily due to higher than anticipated deferred taxes. Capital expenditures during 2012A was also lower at US$312 mm, relative to our US$339 projection."

Revised Estimates: "Incorporating year end results and consideration of YTD production of ~21,000 boe/d NAR, which was higher than our estimate of 19,917 boe/d NAR, we have made non-material positive production revisions moving forward, but have offset this with higher opex estimates."

Moqueta-9 Likely Sooner than "Late March": "Despite the company's formal guidance of anticipating initial well results at Moqueta-9 in late March 2013, we believe the production testing could complete a few weeks earlier in mid-March. As this well looks to drill beyond a bounding fault, positive results could further enlarge this field. We currently carry this well at US$0.30 un-risked."

Catalysts: "Aside from Moqueta, the next likely catalyst are the hz multistage frac well results in Brazil, which could come sometime in Q2/13."

Recommendation: "We reiterate our Outperform rating and maintain our target price of US$8.50. We continue to favor Gran Tierra in South America and we believe the company is on the cusp of hatching its prospects, potentially resulting in a multiyear growth platform from three pillars, including Moqueta in Colombia, Bretana in Peru and the Reconcavo in Brazil."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks:

More from MT Newswires


MT Newswires

MT Newswires

Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by