Earthstone Energy (ESTE) Upgrade - Dec 22
Posted: Tue Dec 22, 2020 12:14 pm
From RBC Capital Markets dated 12-22-2020
Our updated model shows the "IRM" acquisition was highly
accretive to our CFPS estimates by 10%/4% in 2021/2022. The transaction
also builds operational scale, should improve trading liquidity, and shows
ESTE can accretively build on its core Permian acreage. We increased our
target by $2/share to $8, reflecting the CF accretion and operational scale.
My valuation before the acquisition was $8.00 per share.
Our updated model shows the "IRM" acquisition was highly
accretive to our CFPS estimates by 10%/4% in 2021/2022. The transaction
also builds operational scale, should improve trading liquidity, and shows
ESTE can accretively build on its core Permian acreage. We increased our
target by $2/share to $8, reflecting the CF accretion and operational scale.
My valuation before the acquisition was $8.00 per share.