Big Dog's Boom Boom Room Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: 22jt	4/22/2013 11:48:22 PM
	1 Recommendation Read Replies (1) of 206178

CG on ROSE - ACQUISITION CAPITALIZATION COMPLETE ; NOW IT'S EXECUTION Investment thesis We are lowering our target price $12 to $57 per share due to slightly lower NGL benchmark pricing (~36% of WTI), a slightly higher gas/NGL production composition and the issuance of 8.05 million shares of common equity (includes overallotment). Notably, our ’13 production exit rate of 58 Mboepd is at the midpoint of guidance (56-60 Mboepd) with a liquids composition (~63%) in line with the company’s outlook. Rosetta should generate ~40% growth in ’13. Equity component to finance Permian deal retains firm’s robust capitalization Pro forma the Permian Basin property acquisition and issuance of 8.05 million shares of common equity, the company’s year-end ’13E net debtto- EBITDA increases from ~0.7x to ~1.6x. The company’s pro forma leverage ratio is modestly below the industry median, and should stabilize thereafter assuming ~$1.1 billion per annum capital plan. Lower vertical Wolfbone well costs suggest capital productivity of vertical development is comparable to promising horizontal Wolfcamp A test In ’13, the company plans to drill 40+ vertical Wolfbone wells and several horizontal Wolfcamp wells. Vertical Wolfbone wells recover 200+ Mboe (~80% oil) for a cost of ~$3.5 million. The company’s initial Wolfcamp A test (~6,800 lateral, 18 frac stages) commenced at 1,100+ Boepd (75%-80% oil), suggesting a recovery of 600+ Mboe for a cost of ~$10 million. The initial performance of this Wolfcamp A tests suggests the capital productivity of horizontal development in Reeves County could be comparable to vertical development. Rosetta is completing a Wolfcamp A test with a 7,000’+ lateral. More.....19 pages research.canaccordgenuity.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next