Note from Neal Dingmann at Truist Financial on 9-16-2022
SilverBow Resources, Inc. (SBOW, $38.03, Buy) - Continuing
to Add Scale with Another Positive Deal - Silverbow announced
an increase in its Webb County position carving out a section
in the Dorado play with plans to run a dedicated rig across the
county given the strong economics. While the capital spent to-
date in the play represents a small investment (~6% of mkt cap),
we expect this activity/capital spend to increase as the company
takes advantage of the strong natural gas strip and the highly
gassy nature of this play.
Neal's price target is $62.00
SilverBow Resources (SBOW) Price Target - Sept 16
SilverBow Resources (SBOW) Price Target - Sept 16
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: SilverBow Resources (SBOW) Price Target - Sept 16
SBOW had an update in August
https://s23.q4cdn.com/985396181/files/d ... t-2022.pdf
See slide 4
At that time:
Market Cap was 1.0 b
Debt was .6
---------------------------
Ev was 1.6 b
PV10 was 1.8b
Since then the stock is down 30 % and EV is now 1.3 b vs 1.8 B
2023 ebitda is 700 m ...1.3/.7 is less than 2 x
They spent 50 m to add to core acreage and the name was slammed on Friday, down 10.6 % on a combination of slide in energy names, ng in particular, and this deal which subtracts from FCF in the short term.
This is a buying opportunity! I added on Friday
Playing with Dan's model, (and trying to be very conservative) 2023 ebitda times 3x (instead of 5.5 x), with no change in ebitda from the acquisition would yield a price of (3 *700= 2.1 b less debt -.7) = 1.4 b which is 2 x current stock price 33 gives a price of $ 66
I don't understand why this name is so cheap.
https://s23.q4cdn.com/985396181/files/d ... t-2022.pdf
See slide 4
At that time:
Market Cap was 1.0 b
Debt was .6
---------------------------
Ev was 1.6 b
PV10 was 1.8b
Since then the stock is down 30 % and EV is now 1.3 b vs 1.8 B
2023 ebitda is 700 m ...1.3/.7 is less than 2 x
They spent 50 m to add to core acreage and the name was slammed on Friday, down 10.6 % on a combination of slide in energy names, ng in particular, and this deal which subtracts from FCF in the short term.
This is a buying opportunity! I added on Friday
Playing with Dan's model, (and trying to be very conservative) 2023 ebitda times 3x (instead of 5.5 x), with no change in ebitda from the acquisition would yield a price of (3 *700= 2.1 b less debt -.7) = 1.4 b which is 2 x current stock price 33 gives a price of $ 66
I don't understand why this name is so cheap.
Re: SilverBow Resources (SBOW) Price Target - Sept 16
Am I the only guy buying this name?
Re: SilverBow Resources (SBOW) Price Target - Sept 16
You are not alone my friend.
Per new release mgt estimates 650bcf of recoverable resource from new acreage. They added a rig first of July. Take a few months to build some scale but the spending of more cash flow at current pricing will payoff nicely for shareholders. They need to get a luncheon and webinar on Dan’s calendar to spread the word though most of this year they have been very busy closing acquisitions. They are running 1 gas rig and one oil rig. Drilling Webb County gas wells that produce 15mmcf +/-a day into premium gas markets should payoff nicely.
Per new release mgt estimates 650bcf of recoverable resource from new acreage. They added a rig first of July. Take a few months to build some scale but the spending of more cash flow at current pricing will payoff nicely for shareholders. They need to get a luncheon and webinar on Dan’s calendar to spread the word though most of this year they have been very busy closing acquisitions. They are running 1 gas rig and one oil rig. Drilling Webb County gas wells that produce 15mmcf +/-a day into premium gas markets should payoff nicely.
-
- Posts: 11
- Joined: Wed Jan 20, 2021 5:33 pm
Re: SilverBow Resources (SBOW) Price Target - Sept 16
Just add for 75K today. You are not alone !!
Re: SilverBow Resources (SBOW) Price Target - Sept 16
When we get back from Mexico, I will push them harder to get on our webinar schedule. Yes they have been extremely busy.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group