January 7, 2023 (Investorideas.com Newswire) The company’s “shares continue to offer deep value, production and cash flow growth and reserves upside,” noted an Auctus Advisors report.
Valeura Energy Inc. (VLE:TSX; PNWRF:OTCMKTS) is raising CA$10 million (CA$10M) via a bought deal financing priced at CA$2.54 per share, where the stock is currently trading, reported Auctus Advisors analyst Stephane Foucaud in a Feb. 2 research note.
“While the additional cash was arguably not required, we understand that the board of Valeura decided to accept the bought deal to provide an additional cash buffer in the interim period prior to the closing of the acquisition of the Mubadala asset and prior to first oil at Wassana (both in Q1/23),” wrote Foucaud.
Despite the financing, Auctus maintained its price target on the petroleum and natural gas company of CA$4.70 per share. This implies a potential 90% return for investors from the current share price. Foucaud noted that dilution from the financing is minimal, given Valeura’s current market cap.
“The shares continue to offer deep value, production and cash flow growth and reserves upside,” Foucaud wrote.
Robust Cash Flow
The analyst pointed out Auctus now estimates Valeura’s net cash for full-year 2023 (FY23) to be US$220M, greater than the projected year-end company market cap of US$184M.
For net cash in FY24, Auctus forecasts US$380M.
“The magnitude of future cash generation creates the opportunity for potential shareholder distributions,” Foucaud added.
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Disclosures For Auctus Advisors, Valeura Energy Inc., February 2, 2023
Valeura Energy inc (“Valeura” or the “Company”) is a corporate client of Auctus Advisors LLP (“Auctus”). Auctus receives, and has received in the past 12 months, compensation for providing corporate broking and/or investment banking services to the Company, including the publication and dissemination of marketing material from time to time.
Author: The research analyst who prepared this research report was Stephane Foucaud, a partner of Auctus.
Not an offer to buy or sell: Under no circumstances is this note to be construed to be an offer to buy or sell or deal in any security and/or derivative instruments. It is not an initiation or an inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000. Note prepared in good faith and in reliance on publicly available information Comments made in this note have been arrived at in good faith and are based, at least in part, on current public information that Auctus considers reliable, but which it does not represent to be accurate or complete, and it should not be relied on as such.
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