Wells Fargo Maintains an 'Outperform' on Forest Oil (FST); Positive Announcements All Around

September 12, 2012 10:51 AM EDT Send to a Friend
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Price: $0.34 --0%

Rating Summary:
    5 Buy, 15 Hold, 3 Sell

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    Up: 14 | Down: 28 | New: 51
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Wells Fargo maintains an 'Outperform' on Forest Oil (NYSE: FST) price target range $14-$16.

Analyst, David Tameron, said, "Forest issued a trio of releases, placing interim CEO Patrick McDonald as permanent CEO, updating H2 guidance, and announcing a $300MM 8-year note offering. No update on asset sales--we expect an update alongside the Q3 2012 release."

"H2 2012 production now guided to 330-340 MMcfe/d (66% natural gas) from the prior 320-330 MMcfe/d (67% gas), although capex guidance was raised by $50MM to $240-260MM for the second half of the year. Capex was raised due to increased drilling efficiencies and additional nonoperating activity, which translates into more Eagle Ford wells and additional nonoperating Hogshooters. Based on new guidance/mix, production raise primarily came from oil. We were previously at 320 MMcfe/d and $200MM but are moving to 334 MMcfe/d and $250MM."

FY12 EPS estimate lifted from $0.39 to $0.41 and FY13 from $0.39 to $0.46.

For an analyst ratings summary and ratings history on Forest Oil click here. For more ratings news on Forest Oil click here.

Shares of Forest Oil closed at $8.17 yesterday.


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