Imperial Capital starts PDCE, TUSK, CDEV, SOI at Outperform
- Imperial Capital today initiated coverage of four energy and energy services stocks with Outperform ratings: PDC Energy (NASDAQ:PDCE), Mammoth Energy Services (NASDAQ:TUSK), Centennial Resource Development (NASDAQ:CDEV) and Solaris Oilfield Infrastructure (NYSE:SOI).
- Imperial believes PDCE, which is trading below its Permian and DJ Basin peers, is attractively valued and has a trajectory for multi-year production growth.
- The firm thinks TUSK's suite of services and vertical integration strategy should help pick up incremental work, expand margins vs. peers and drive higher equipment utilization.
- CDEV has all the attributes to be a best of breed in the Permian, Imperial says, citing its track record of finding resources plays early and doing so repeatedly, and experience navigating through various commodity cycles.
- The firm believes SOI's patented mobile proppant management systems provide a logistical solution to the increasing volumes of sand being used at unconventional wellsites.
- Additionally, Approach Resources (NASDAQ:AREX) is started at In-Line and should become better positioned to accelerate growth when crude prices strengthen on a sustainable basis.