Energy & Power
Oil & Gas Exploration & Production
SN (Buy/$36.00 TP; $29.15): Adjusting Estimates Post Conference Call
I will be updating my forecast model and profile on SN next week.
SN Update from Stifel
SN Update from Stifel
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: SN Update from Stifel
An updated Net Income & Cash Flow Forecast model for Sanchez Energy (SN) has been posted under the Sweet 16 Tab.
My Fair Value Estimate ("FVE") has increased to $42.50.
For companies with rapidly growing production, the FVE goes up when I roll my forecast model forward a year. Because my valuation now includes eight quarters of estimates, it is a bit of "apples to oranges" when comparing it to the current First Call Price Target. FC's price target for SN is currently $33.44/share.
My FVE is what I believe the net assets of the company are worth today in an open bid situation. If you want to see my calculation of FVE for any of our portfolio companies, just open the Excel spreadsheet and click on the cell to see the formula. Companies with a lot of running room and a solid balance sheet deserve a high multiple.
My Fair Value Estimate ("FVE") has increased to $42.50.
For companies with rapidly growing production, the FVE goes up when I roll my forecast model forward a year. Because my valuation now includes eight quarters of estimates, it is a bit of "apples to oranges" when comparing it to the current First Call Price Target. FC's price target for SN is currently $33.44/share.
My FVE is what I believe the net assets of the company are worth today in an open bid situation. If you want to see my calculation of FVE for any of our portfolio companies, just open the Excel spreadsheet and click on the cell to see the formula. Companies with a lot of running room and a solid balance sheet deserve a high multiple.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group