Credit Suisse Maintains an 'Outperform' on Petrohawk (HK); Permian Offers Sizable Oil Potential; Raising Numbers
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Price: $0.16 --0%
Rating Summary:
2 Buy, 14 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 14 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Credit Suisse maintains an 'Outperform' on Petrohawk (NYSE: HK), raises PT from $33 to $35.
Credit Suisse analyst says, "HK's entry into the Permian (325k net acres) helps diversify risk and adds another attractive liquids-rich option in which to shift future capital to fund growth. This acquisition comes near the tail-end of the 'HBP' drilling program in the Haynesville, which HK anticipates will decelerate to 6 rigs for 2H11 from 13 rigs now (vs. 16 in 1Q). While we are only assigning acquisition value for the Permian acreage given that it is still early in the exploration stages, we believe the asset will provide significant upside given recent de-risking by other producers in the play for multiple horizons."
"...We estimate that HK will have approximately $2.0B ($1.2B of available at the end of 1Q plus $800MM after-tax proceeds from the asset sale) of liquidity to fund a $1.8B cash flow shortfall through year-end 2012, which could require the company to tap additional sources of capital next year...Our 2011/12/13 EPS increases by 62%/48%/33% to $1.07/$1.97/$2.73 respectively."
For more ratings news on Petrohawk click here and for the rating history of Petrohawk click here.
Shares of Petrohawk closed at $25.91 yesterday.
Credit Suisse analyst says, "HK's entry into the Permian (325k net acres) helps diversify risk and adds another attractive liquids-rich option in which to shift future capital to fund growth. This acquisition comes near the tail-end of the 'HBP' drilling program in the Haynesville, which HK anticipates will decelerate to 6 rigs for 2H11 from 13 rigs now (vs. 16 in 1Q). While we are only assigning acquisition value for the Permian acreage given that it is still early in the exploration stages, we believe the asset will provide significant upside given recent de-risking by other producers in the play for multiple horizons."
"...We estimate that HK will have approximately $2.0B ($1.2B of available at the end of 1Q plus $800MM after-tax proceeds from the asset sale) of liquidity to fund a $1.8B cash flow shortfall through year-end 2012, which could require the company to tap additional sources of capital next year...Our 2011/12/13 EPS increases by 62%/48%/33% to $1.07/$1.97/$2.73 respectively."
For more ratings news on Petrohawk click here and for the rating history of Petrohawk click here.
Shares of Petrohawk closed at $25.91 yesterday.
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