Power Outage in Sugar Land, Texas
Posted: Fri Nov 04, 2022 4:19 pm
I planned to get a lot more work done today but soon after this morning's webinar we had a power outage for ~3 hours.
I just finished my update for Earthstone, which will be posted under the Sweet 16 tab soon.
Note from Neal Dingmann at Truist Financial dated 11/3/2022
Earthstone Energy, Inc. (ESTE, $15.82, Buy with PT of $26)
Leading FCF Yield Demonstrates Undervalued Status
- We continue to forecast Earthstone to generate $500mm+ FCF next year (5x 2021) resulting in one of the highest yields in our coverage group, while equally appealing on an earnings basis at ~2x. We anticipate FCF and earnings to be driven by efficient operations given the improved company scale including a much more active five-rig program. We also believe much of the peer trading discount will evaporate as the private equity overhang continues to decline as we have seen in recent months.
ESTE closed today at $16.02
For its size (100,000 Boepd of current production) ESTE has very little analyst coverage.
I just finished my update for Earthstone, which will be posted under the Sweet 16 tab soon.
Note from Neal Dingmann at Truist Financial dated 11/3/2022
Earthstone Energy, Inc. (ESTE, $15.82, Buy with PT of $26)
Leading FCF Yield Demonstrates Undervalued Status
- We continue to forecast Earthstone to generate $500mm+ FCF next year (5x 2021) resulting in one of the highest yields in our coverage group, while equally appealing on an earnings basis at ~2x. We anticipate FCF and earnings to be driven by efficient operations given the improved company scale including a much more active five-rig program. We also believe much of the peer trading discount will evaporate as the private equity overhang continues to decline as we have seen in recent months.
ESTE closed today at $16.02
For its size (100,000 Boepd of current production) ESTE has very little analyst coverage.