Boenning & Scattergood Starts GreenHunter Energy (GRH) at Outperform
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Price: $0.09 --0%
Rating Summary:
3 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
3 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Boenning & Scattergood initiates coverage on GreenHunter Energy (NYSE: GRH) with a Outperform. PT $3.00.
The firm comments, "Green Hunter Energy, through its main subsidiary Green Hunter Water (GHW), is focused on providing water, fluid and environmental services to the quickly growing unconventional E&P sector. GRH focuses on higher return assets, such as salt water disposal (SWD) wells, to enter the market, and then the company builds assets and services around these wells, such as trucking, storage, recycle and reuse. We are firm believers that multiple services and methods of disposal will be necessary to become a successful service provider. GRH currently operates in major shale plays with Appalachia representing the largest and most coordinated one. Recent acquisitions in the Eagle Ford will expand its operations in that region. Revenues and earnings growth will be driven by continued expansion of services in all plays, acquisitions and utilization of assets including SWD and trucking. We anticipate GRH generating $8.04 million of adjusted EBITDA in 2013 and $16.76 million in 2014. Our target is predicated on 10x our 2014 EBITDA estimate, discounted back to present. The multiple takes into account the well positioned assets and high growth of the industry."
For an analyst ratings summary and ratings history on GreenHunter Energy click here. For more ratings news on GreenHunter Energy click here.
Shares of GreenHunter Energy closed at $1.59 yesterday.
The firm comments, "Green Hunter Energy, through its main subsidiary Green Hunter Water (GHW), is focused on providing water, fluid and environmental services to the quickly growing unconventional E&P sector. GRH focuses on higher return assets, such as salt water disposal (SWD) wells, to enter the market, and then the company builds assets and services around these wells, such as trucking, storage, recycle and reuse. We are firm believers that multiple services and methods of disposal will be necessary to become a successful service provider. GRH currently operates in major shale plays with Appalachia representing the largest and most coordinated one. Recent acquisitions in the Eagle Ford will expand its operations in that region. Revenues and earnings growth will be driven by continued expansion of services in all plays, acquisitions and utilization of assets including SWD and trucking. We anticipate GRH generating $8.04 million of adjusted EBITDA in 2013 and $16.76 million in 2014. Our target is predicated on 10x our 2014 EBITDA estimate, discounted back to present. The multiple takes into account the well positioned assets and high growth of the industry."
For an analyst ratings summary and ratings history on GreenHunter Energy click here. For more ratings news on GreenHunter Energy click here.
Shares of GreenHunter Energy closed at $1.59 yesterday.
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