Bonanza Creek (BCEI) - Update apr 6

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dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Bonanza Creek (BCEI) - Update apr 6

Post by dan_s »

This one is moving to the top of my Watch List

Stifel:
Bonanza Creek Energy (BCEI, $37.00, Buy; Target $65.00)
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Updating Estimates Post HPR Closing - Michael S. Scialla -
BCEI released initial post-HPR acquisition production guidance that was 11%/12% below SF/consensus estimates. We would view any under-performance on this news as a buying opportunity. Lower than expected production guidance was solely due to a decision to delay the pre-acquisition completion of 22 HPR wells. The new schedule allows these wells to be completed by BCEI with a better design that should result in greater well productivity. In addition, the wells will now be tied to the company's RMI system, reducing infrastructure investment and improving capital efficiency. Based on our updated forecasts, the stock's 2022E FCF/EV yield of 13% compares favorably to our mid-cap average of 12% and the average of eleven other sectors of 4%
Dan Steffens
Energy Prospectus Group
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