Original-Research: Saturn Oil & Gas Inc. - von GBC AG
Einstufung von GBC AG zu Saturn Oil & Gas Inc.
Unternehmen: Saturn Oil & Gas Inc.
ISIN: CA80412L1076
Anlass der Studie: Research Update
Empfehlung: BUY
seit: 21.05.2021
Kursziel: 0.46 CAD
Kursziel auf Sicht von: 31.12.2021
Letzte Ratingänderung:
Analyst: Julien Desrosiers; Felix Haugg
Transformative transaction increasing oil production from 350 boe/d to over 7,200
Prime assets with proven low depletion rates. The company is cur-rently completing the Oxbow assets acquisition, which is located in the Williston Basin oil field. The company's new inventory will consist of low decline oil wells with very low gas volumes (5%), thus providing them a stable foundation to maintain and grow their operations.
Over 2,000% increase in daily boe production. The company pro-duced 375 boe/d before the transaction and will produce just over 7,500 boe/d once the transaction is finalized. With the increased cash flow and reinvestment in the field, we expect the company to be able to maintain post transaction production levels for at least 24 to 36 months.
Lean and cost efficiency structure. The company will scale up their operations by a significant magnitude to accommodate their increase in production. Being a larger producer, the company will benefit from possible economies of scale and we expect them to maximize the Ox-bow assets with the same efficiency as their other assets.
Pipeline to international markets. In a time of struggling transportation capacities in Canada, Saturn will acquire multiple pipelines and facili- ties that will allow them easier access to the international market.
Significant reduction in debt leverage of the company. These assets will generate a massive positive cashflow for the company, which will allow them to maintain current oil production levels and initiate an ag-gressive debt pay-back program.
From net loss to a 53.21% positive Margin. Following the completion of the transaction, we forecast that the company will achieve revenues of over $146M CAD in 2021 with an EBIT margin of 53.21%.
Hedging to secure the future. The company have entered into hedg-ing agreements of up to 85% of their declining production acquired with the Oxbow assets, thus securing debt repayment for the next 3 years.
Asset's integration. We expect the company to add key members to their executives and board of directors. This will strengthen their gov-ernance and ensure a smooth transition from a junior oil company with $7,549M CAD revenues in 2020 to a major player in SE Saskatchewan with over $146,580M CAD in revenues in 2021e.
Based on our DCF model we have determine a price target of 0.46 CAD per share
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/22491.pdf
Kontakt für Rückfragen
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Date (time) of completion of English version: 21/05/2021 (03:25 pm) Date (time) of first distribution of English version: 21/05/2021 (04:15 pm) Target price valid until: max. 31/12/2021
übermittelt durch die EQS Group AG.
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
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