Athletic Momentum For Athlon?
Bakken Update: Permian Pure Play Athlon Has Howard County Upside
Michael Filloon • 28 Comments
Michael Filloon • 28 Comments
Athlon Energy: A Good Company But A Richly Valued Stock With Limited Upside From The Current Levels
Value Digger • 11 Comments
Value Digger • 11 Comments
Nov. 4, 2014, 12:18 PM| Nov. 4, 2014, 12:18 PM
Sep. 29, 2014, 12:49 PM
Sep. 29, 2014, 12:26 PM
- Encana’s (ECA +2.3%) takeover of Athlon Energy (ATHL +24.6%) is good news for Diamondback Energy (FANG +2.3%) and Energen (EGN +2.2%), according to analysts at Sterne Agee.
- The acquisition implies a value of $98/share for FANG, Sterne says, based on FANG's 85K net acre leasehold position, estimated 19.8K boe/day of Q3 production, $585M of assumed debt, and a $1.7B market value for the Viper Energy Partners (NASDAQ:VNOM) units it owns.
- The firm sees even more upside for EGN, as ECA’s price implies a value of $102/share for EGN, based on 180K net acres across both sides of the Permian Basin, 48K boe/day of Q3 Permian Basin production, 132M cfe/day of Q3 San Juan Basin, and $835M of pro forma net debt as of Sept. 30.
- Permian producers Laredo Petroleum (LPI +5%), Parsley Energy (PE +5%) and RSP Permian (RSPP +4.8%) also are higher following the acquisition news.
Sep. 29, 2014, 9:16 AM
Sep. 29, 2014, 7:27 AM
- Encana (NYSE:ECA) agrees to acquire Athlon Energy (NYSE:ATHL) for $58.50/share in cash plus assumption of $1.15B of senior debt, bringing the total transaction value to ~$7.1B.
- The deal gives the no. 2 Canadian gas producer a large stake in Texas' oil-rich Midland Basin.
- ECA says the deal adds 140K net acres of land and production of ~30K boe/day, and that it will spend $1B next year to boost drilling in the new play.
- ATHL +24.3% premarket.
Sep. 3, 2014, 11:23 AM
- Athlon Energy (ATHL +3.2%) reported the best horizontal well in the eastern Midland Basin with its latest well in Howard County as part of its operational update late yesterday, Topeka Capital says, prompting the firm to raise its production trajectory and its target price for Buy-rated ATHL shares to $64 from $60 (Briefing.com).
- Additionally, ATHL reported a top-tier Wolfcamp B well and an above average initial Lower Spraberry well in the basin.
- ATHL's eight total horizontal wells are outperforming their type curves by nearly 70% with the wells tracking more than 90% rate of returns on average at $90/bbl oil, which Topeka says is above its type curve average of 36%.
Jun. 12, 2014, 10:54 AM
- Athlon Energy (ATHL +2.1%) is initiated with a Buy rating and $52 price target at Mizuho, which calls the company a pure play on the Permian Basin with ~134K net acres in the Midland Basin.
- ATHL's transition to more capital efficient, higher rate-of-return horizontal wells from vertical wells combined with nearly 100% production growth this year will drive share prices higher, Mizuho says, adding that further de-risking of horizontal plays likely will yield upside to its NAV.
Apr. 16, 2014, 2:26 PM
- Athlon Energy (ATHL +4%) powers to all-time highs, dismissing news of planned stock and senior note sales after boosting its outlook for FY 2014 production by ~17% over its prior guidance.
- Including the impact of recent acquisitions and better than expected Q1 production, ATHL expects to average 23K-24.25K boe/day, up from January guidance of 19.75K-20,75K boe/day.
- ATHL also reported record Q1 production, and boosted its 2014 capital budget by another $105M to $700M.
Apr. 10, 2014, 3:15 PM
- Athlon Energy's (ATHL -2.7%) recent agreement to buy 23K-plus acres of Midland Basin property could be good news for Linn Energy (LINE -2.3%), according to Citigroup analysts.
- LINE has ~55K Midland net acres that are on the selling block, and Citi says it may be able to acquire $2B-plus in mature producing properties in exchange for its Permian assets, based on the ATHL transactions; a sale/swap of LINE's Permian properties and a subsequent investment of proceeds into MLP-suitable assets should lower the overall decline rate of the partnership’s asset portfolio.
- Yet Citi still rates the stock Neutral because it believes Linn will need another large equity financed acquisition or an equity offering to get closer to the targeted 3x leverage.
Apr. 9, 2014, 12:42 PM
- Athlon Energy (ATHL +9.3%) is maintained with a Buy rating with an increased $48 price target, up from $44, at Topeka Capital following news it plans to acquire assets in the Midland Basin for $873M.
- The firm sees the assets as a very attractive package, with a large portion located in Martin County, Tex., where typical 7,500-ft. lateral wells are projected to produce 800M boe; based on Topeka's estimates, the acquisitions and acceleration are accretive to earnings, cash flow and RNAV estimates.
Nov. 12, 2013, 3:42 PM
- Athlon Energy (ATHL +11.2%) powers higher after posting Q3 earnings and revenues that easily beat expectations.
- Discretionary cash flow increased 93% to ~$54M in Q3 vs. ~$28M for the year-ago quarter.
- Average daily production volumes rose 69% to 12,960 boe/day vs. 7,673 boe/day a year ago.
- ATHL says it plans to provide FY 2014 outlook early in Q1, at which time it expects to provide initial production results on its first two horizontal Wolfcamp wells.
Athlon Energy Inc is an independent exploration and production company engaged in the acquisition, development, and exploitation of unconventional oil and liquids-rich natural gas reserves in the Permian Basin.
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States
Other News & PR