Noble Financial Trims NAV on Miller Energy (MILL) Following Q2 Results; Maintains 'Hold' Rating

Noble Financial maintains Miller Energy Resources (NYSE: MILL) at Hold following Q2 results, while also trimming its NAV outlook on the company.

Analyst Michael Heim issued the following observations and commentary:

• Operating results were generally in line with expectations, but oil pricing issues (traditional premium to WTI has been lost) are a concern
• Management sets new strategic direction designed to address its financial position, rationalize assets, invest in core assets, and streamline the organization
• Liquidity issues remain a concern given MILL's small cash and large account payable positions but Alaska Carry-Forward Loss Credits may help
• We are reducing our NAV estimate for the company to reflect an increase in debt, a lower price deck (our long-term oil price assumption is now $65 vs $70), and the elimination of MILL's derivatives position. Our new NAV estimate is $0.80 per share. We continue to rate the shares as Hold because while we believe there is upside to MILL's asset value, we believe the firm faces significant hurdles to unleashing this value.

For an analyst ratings summary and ratings history on Miller Petroleum click here. For more ratings news on Miller Petroleum click here.

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