Sundance Energy (SNDE) Update - Dec 5

[dan_s]

On December 4, 2019 Stifel sent out a new report on Sundance Energy. They rate it a BUY with a price target of $68.00/share.
SNDE is trading today at $10.29.

Sundance is hosting the next EPG Luncheon at The Hess Club on Wednesday, December 11. Seating is limited, so you must register on our website if you wish to attend.

From Stifel's report:

Model updates: On November 26, Sundance completed the redomiciliation process from the Australian Securities Exchange to Nasdaq, whereby the company exchanged newly issued shares of common stock for all issued and outstanding ordinary ASX shares based on an exchange ratio of 100:1 of ASX shares to Nasdaq shares. Accordingly, we updated our model to reflect the post-redomicilation share count. We believe the redomiciliation should improve the company's liquidity, valuation, and simplify its corporate structure.

Key catalysts: We are primarily focused on two catalysts.
First, longer-dated well results from Sundance’s Area 41 acreage in Live Oak County. Sundance’s 2018 and 2019 wells are outperforming its type curve by 38% and 16%, respectively, and represent a source of positive reserve and borrowing base revisions for the company.
Second, decreased (~7-10%) well costs in 2020 through various cost reduction initiatives, including extreme limited entry completions and dual well fracing.

Stifel's operating cash flow per share forecast for 2020 is $19.55.

Valuation and recommendation: We reiterate our Buy rating and our 12-month target price of $68.00/share.

If you'd like to see the new report from Stifel that includes a detailed Net Income & Cash Flow Forecast, send me an email: dmsteffens@comcast.net