Original-Research: Saturn Oil & Gas Inc. - von GBC AG

Einstufung von GBC AG zu Saturn Oil & Gas Inc.

Unternehmen: Saturn Oil & Gas Inc.
ISIN: CA80412L8832

Anlass der Studie: Research Report (Anno)
Empfehlung: BUY
Kursziel: 12.17 CAD
Kursziel auf Sicht von: 31/12/2022
Letzte Ratingänderung:
Analyst: Julien Desrosiers; Felix Haugg

Record quarter production 6,970 boe/d

Record quarter Free Cash Flow $9.5M CAD

Record production. The company has produced 6,970 boe/d during Q3-2021.
This represents an increase of 270% over their Q2 results and 1297% over Q3

Record Free Cash Flow. The company Q3 EBITDA resulted in $17.2M CAD. The
company posted a $9.5M CAD positive free cash flow, after capital
expenditures, compared to $0.3M CAD in Q3 2020.

Balance sheet discipline. Its lean structure and conservative capital
expenditure of $4.5M CAD allows the company to exit Q3 2021 with over $14M
CAD cash on hand.

Mature assets. The maturity of the Oxbow asset and low decline rate of 12%
gives Saturn Oil & Gas flexibility for future development. There are
currently 370 drilling location with certified reserves. Additionally,
there is the opportunity for low capex and rapid increase in oil production
as brought about by 400 reactivations of non-producing wells.

Hard counter to oil price volatility. The strong hedge against WTI spot
price secures debt repayment at the cost of capping a potential increase in
revenues. However, it creates revenue stability, easier long-term
projections and secures internal funding of growth projects.

Future profitability. Saturn Oil & Gas has incurred $66.8M CAD in 2021 in
unrealized non-cash losses on future oil hedging positions. Therefore, in
future periods Saturn Oil & Gas is expected to report higher earnings based
on increased future production levels (88% of the $66.8M CAD is for 2022-
to-2025 derivative contracts)

Market and financier support. The company has completed a share
consolidation. With 25.1M shares out and the support of their financier,
the company could be looking for more unique acquisition opportunities.

Asset fully integrated. The Q3 results indicate to the markets that the
integration of the asset is now complete.

Brighter future. The company is poised and ready for their next development
stage. Acquisition or organic growth. The oil price will most definitely
guide the next phase for Saturn Oil & Gas.

Based on our DCF model we have raised our price target to 12.17 CAD per
share and maintain our BUY rating.

Die vollständige Analyse können Sie hier downloaden:

Kontakt für Rückfragen
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
Date and time of completion of this research: 20/12/2021 6:30 pm
Date and time of first distribution: 21/12/2021 10:00 am
Target price valid until: max. 31/12/2022

-------------------übermittelt durch die EQS Group AG.-------------------

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