1Q15 results were highlighted by lower than expected operating costs, as Syncrude has already made progress on the recently announced cost savings initiatives. We have lowered our near and longer term operating cost forecasts, and raised our target price by $2.00 to $11.00/ share, in line with our estimated Net Asset Value under FirstEnergy’s price deck (WTI gradually rising to US$85/bbl WTI by 2020e) at a 9% discount rate. We continue to carry a Market Perform ranking.
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1Q15 Analysis
- Published:
01 May 2015 -
Author:
Michael P. Dunn -
Pages:
7
1Q15 results were highlighted by lower than expected operating costs, as Syncrude has already made progress on the recently announced cost savings initiatives. We have lowered our near and longer term operating cost forecasts, and raised our target price by $2.00 to $11.00/ share, in line with our estimated Net Asset Value under FirstEnergy’s price deck (WTI gradually rising to US$85/bbl WTI by 2020e) at a 9% discount rate. We continue to carry a Market Perform ranking.