Ranger Oil (ROCC) Valuation Update - Dec 27
Posted: Tue Dec 27, 2022 7:32 pm
Ranger Oil (ROCC) is the most recent addition to the Sweet 16. It was promoted from the Small-Cap Growth Portfolio on 10-18-2022, replacing Continental Resources that is going private. Ranger Oil was formed by the merger of Lonestar Resources into Penn Virginia which closed 10-5-2021. It is a pure play on the Eagle Ford / Austin Chalk play in South Texas. The Company is ramping up production into year-end. TipRanks’ consensus forecast for 2023 (very close to my forecast model) is earnings per share of $12.81 on revenues of $1.2 billion and operating cash flow per share of $20.98. Those numbers, combined with a recently funded common stock repurchase program, point to a much higher share price.
ROCC closed today at $41.33. My updated valuation is $74.00.
TipRanks: "In the last 3 months, 3 ranked analysts set 12-month price targets for ROCC. The average price target among the analysts is $55.00."
ROCC closed today at $41.33. My updated valuation is $74.00.
TipRanks: "In the last 3 months, 3 ranked analysts set 12-month price targets for ROCC. The average price target among the analysts is $55.00."