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Pastimes : The Beaver Lodge -- Ignore unavailable to you. Want to Upgrade?

To: johnlw who wrote (2524)	5/4/2022 12:09:06 PM
From: johnlw	Read Replies (1) \| Respond to of 2933

National Bank Financial analyst Dan Payne initiated coverage of Kiwetinohk Energy Corp. ( KEC-T +3.37%increase ) with an “outperform” rating, calling CEO Pat Carlson an “industry luminary” who “continues to evolve the Canadian energy landscape.” “Following on management’s leadership in the evolution of the Canadian energy sector, Kiwetinohk Energy Corp. is positioned as one of the most uniquely oriented toward the theme of energy transition, where it intends to vertically integrate high-impact upstream assets through a portfolio of green power generation projects, with a view of becoming a low-cost supplier of low-emissions energy; leveraging climate change as an opportunity and not a risk,” he said. Mr. Payne thinks the Calgary-based company possess “renewables upside backstopped by upstream assets.” “Its strategy of vertically integrating its value chain will lever off of material business units, including its a) upstream assets comprised of 12 mboe/d (45-per-cent liquids) of production with a primary emphasis in the Fox Creek region of NW Alberta, which have visibility to growth towards 20 – 21 mboe/d (Q1/23), or 60-per-cent year-over-year growth, to support a meaningful cash flow base of $250-300-million serving to support concurrent reinvestment through its, b) green energy power generation portfolio, where management envisions generating 1,500 MW of power, or 10 per cent of the Alberta market, from its reliable natural gas & renewables portfolio, with an associated goal to mitigate emissions with 90-per-cent carbon capture,” he said. The analyst set a target of $18 per share, which is $1 below the current consensus. “In addition to resident operating leverage of its upstream assets (10-15-per-cent upside), the company offers a significant energy transition call option of $20-25 per share (200-per-cent upside; $8 per share which is arguably prospective on an un-risked DCF today), positioning itself as a wholly unique investment opportunity,” he said.