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CIBC Update on PetroBakken Energy Ltd. (PBN)PetroBakken Energy Ltd. Q4 Results In Line; Tying In Of Drilled Well Inventory Key To Near-term Growth
PetroBakken reported Q4 results last night that were in line with our expectations. Q4 production of 41,333 Boe/d was in line with our forecast and up 3% from the previous quarter, while cash flow of $0.85/share was in line with our forecast and consensus.
Of note, as of March 4, PetroBakken had 36 (27 net) Cardium wells that were drilled but are not yet producing. In our view, the company's ability to bring these wells on-stream is the key variable/uncertainty for the achievement of near-term production growth.
PetroBakken reiterated its 2011 $800MM capital budget and 2011 exit production guidance of 46,000 Boe/d-49,000 Boe/d. In the Cardium, PetroBakken has budgeted $345MM to drill 95 net HZ wells in 2011, while in the Bakken, it plans to spend $185MM to drill 75 HZ wells.
We maintain our Sector Outperformer rating and our 12- to 18-month price target of $29.00. Our price target is based on a 1.2x target multiple to our Risked NAV (versus the group average multiple of 1.1x). |
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Msg # | Subject | Author | Recs | Date Posted |
63958 | Re: CIBC Update on PetroBakken Energy Ltd. (PBN) | ring | 1 | 3/8/2011 11:37:20 AM |