Crescent Point Energy (CPG) Valuation Update - Apr 5
Posted: Fri Apr 05, 2024 2:24 pm
I have updated my forecast model for CPG based on my updated oil & gas price deck. My valuation increases by $0.15 to $10.65US per share.
My forecast model assumptions "feel" too conservative, but I still don't have a high level of confidence in my model for this one.
Q1 2024 will be the first full quarter since the Hammerhead Acquistion close on 12/21/2023, which added close to 38,000 Boepd of current production and a lot of "Running Room". CPG also closed two other strategic acquisitions in 2023, so it has a lot of "moving parts". Higher WTI oil prices and declining differentials in Canada are really going to help BTE and CPG.
CPG is currently trading at $8.80US.
TipRanks: "In the last 3 months, 8 ranked analysts set 12-month price targets for CPG. The average price target among the analysts is $9.58. The 8 price targets range from $8.84 to $10.69." < All 8 of the analysts rate CPG a BUY, which is somewhat rare.
Based on their December 31, 2023 3rd party reserve report, which uses much lower oil prices than we see today, CPG's PV10 Net Asset Value of just their proved reserves (1P) was $9.60Cdn per share on that date.
My forecast model assumptions "feel" too conservative, but I still don't have a high level of confidence in my model for this one.
Q1 2024 will be the first full quarter since the Hammerhead Acquistion close on 12/21/2023, which added close to 38,000 Boepd of current production and a lot of "Running Room". CPG also closed two other strategic acquisitions in 2023, so it has a lot of "moving parts". Higher WTI oil prices and declining differentials in Canada are really going to help BTE and CPG.
CPG is currently trading at $8.80US.
TipRanks: "In the last 3 months, 8 ranked analysts set 12-month price targets for CPG. The average price target among the analysts is $9.58. The 8 price targets range from $8.84 to $10.69." < All 8 of the analysts rate CPG a BUY, which is somewhat rare.
Based on their December 31, 2023 3rd party reserve report, which uses much lower oil prices than we see today, CPG's PV10 Net Asset Value of just their proved reserves (1P) was $9.60Cdn per share on that date.