PRO Top Ideas
Top Ideas are high-conviction long or short ideas focused on market mispricings with asymmetric risk/reward profiles.
PetroQuest: Initial Woodford West Relay Wells Greatly Exceed Expectations, And The Stock Will Too
- PetroQuest's strategic plan is to funnel free cash flow from its Gulf Coast assets to develop its Woodford acreage.
- 50% of total 2014 cap-ex is allocated to the liquids-rich Woodford play.
- It was a wise decision: production data on the company's first 6 well completions exceeded expectations by ~50%.
- Today's Q1 EPS report was bullish: oil production increased 93%; net income of $0.15/share was up 275% and higher than full-year 2013.
- As a result of the Woodford catalyst, and today's Q1 EPS report, I am raising my previous 12-month price target to $13 - more than double the current stock price.
- Massive Johan Sverdrup Oil Field: Worth An Extra 30% For Lundin Petroleum