TransGlobe Energy Corp
Posted: Sat Mar 03, 2012 12:48 pm
The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Expert Analysis
The Energy Report Interview with Chen Lin (2/28/12) "TransGlobe Energy Corp., which I own, is operating mostly in Egypt and Yemen. If you compare the company, cash-flow wise it is very, very cheap. . .if it can start flowing again in Yemen, that would be another big catalyst. I like the stock, and I own the stock and options." More >
Jessica Lindskog, GMP Securities (2/23/12) "TransGlobe Energy Corp. has closed its previously announced $85M convertible offering, providing management with the flexibility to pursue new business development opportunities including adding new acreage through farm-in arrangements, bid rounds and acquisitions. . .we view the additional funding as positive as it provides financial flexibility moving forward. . .management continues to deliver operational success in Egypt and the recent West Bakr acquisition presents management with the opportunity to add material production growth over the next two years."
David Popowich, Macquarie Capital Markets (2/23/12) "TransGlobe Energy Corp.'s CA$85m convertible debenture financing. . .has a 6% coupon, matures on March 31, 2017, and have a conversion price of CA$15.10/share. . .the company has ear-marked the proceeds for business development opportunities, including the addition of new acreage through farm-ins, bid rounds, or acquisitions. . .this transaction strengthens an already robust balance sheet. . .a conservative operational budget should also see TransGlobe spin off significant free cash flow this year. . .we believe the debenture financing sends a message that TransGlobe is serious about capitalizing on growth opportunities in Egypt over the medium term."
Alexander Klein, Dundee Securities (2/23/12) "TransGlobe Energy Corp. announced that it has closed its offering of $85M aggregate principal amount of 6% convertible unsecured subordinated debentures. . .the company's partner at East Ghazalat, a private Greek company, is currently in a sales process for its 50% share of the concession; we believe that once the sales process is complete, TransGlobe will likely exercise its option to acquire the remaining 50%. . .we believe the company remains a solid investment opportunity. . .we are reiterating our Buy recommendation."
Mike Kozak, Cormark Securities (2/22/12) "We reiterate our Buy rating and CA$20 target price on TransGlobe Energy Corp. . .the company continues development on its West Gharib concession and the newly added West Bakr concession. It also expects to close a second acquisition in Egypt's Western Desert, acquiring 50% and operatorship of South Alamein, near-term. . .with TransGlobe now producing in excess of 17 mbbl/d, we estimate it will generate well in excess of $100M of cash flow, putting the company in a strong position to fund drilling plus acquisitions in 2012."
Expert Analysis
The Energy Report Interview with Chen Lin (2/28/12) "TransGlobe Energy Corp., which I own, is operating mostly in Egypt and Yemen. If you compare the company, cash-flow wise it is very, very cheap. . .if it can start flowing again in Yemen, that would be another big catalyst. I like the stock, and I own the stock and options." More >
Jessica Lindskog, GMP Securities (2/23/12) "TransGlobe Energy Corp. has closed its previously announced $85M convertible offering, providing management with the flexibility to pursue new business development opportunities including adding new acreage through farm-in arrangements, bid rounds and acquisitions. . .we view the additional funding as positive as it provides financial flexibility moving forward. . .management continues to deliver operational success in Egypt and the recent West Bakr acquisition presents management with the opportunity to add material production growth over the next two years."
David Popowich, Macquarie Capital Markets (2/23/12) "TransGlobe Energy Corp.'s CA$85m convertible debenture financing. . .has a 6% coupon, matures on March 31, 2017, and have a conversion price of CA$15.10/share. . .the company has ear-marked the proceeds for business development opportunities, including the addition of new acreage through farm-ins, bid rounds, or acquisitions. . .this transaction strengthens an already robust balance sheet. . .a conservative operational budget should also see TransGlobe spin off significant free cash flow this year. . .we believe the debenture financing sends a message that TransGlobe is serious about capitalizing on growth opportunities in Egypt over the medium term."
Alexander Klein, Dundee Securities (2/23/12) "TransGlobe Energy Corp. announced that it has closed its offering of $85M aggregate principal amount of 6% convertible unsecured subordinated debentures. . .the company's partner at East Ghazalat, a private Greek company, is currently in a sales process for its 50% share of the concession; we believe that once the sales process is complete, TransGlobe will likely exercise its option to acquire the remaining 50%. . .we believe the company remains a solid investment opportunity. . .we are reiterating our Buy recommendation."
Mike Kozak, Cormark Securities (2/22/12) "We reiterate our Buy rating and CA$20 target price on TransGlobe Energy Corp. . .the company continues development on its West Gharib concession and the newly added West Bakr concession. It also expects to close a second acquisition in Egypt's Western Desert, acquiring 50% and operatorship of South Alamein, near-term. . .with TransGlobe now producing in excess of 17 mbbl/d, we estimate it will generate well in excess of $100M of cash flow, putting the company in a strong position to fund drilling plus acquisitions in 2012."