Storm announced a processing arrangement with Spectra, securing 65 mmcf/d of processing capacity at McMahon on favourable terms. Concurrently, it has accelerated its 2016e capex plans and lifted its 2017e growth forecasts. We have increased our 12-month target price to $6.50/sh from $5.25/sh on the maintenance of our prior 2017e EV/DACF target multiple. Decent stock price performance leading up to this announcement, coupled with market expectation that Storm could accelerate its program and i
09 Sep 2016
Storm Announces Processing Agreement, Capex Acceleration
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Storm Announces Processing Agreement, Capex Acceleration
- Published:
09 Sep 2016 -
Author:
Robert Fitzmartyn -
Pages:
6
Storm announced a processing arrangement with Spectra, securing 65 mmcf/d of processing capacity at McMahon on favourable terms. Concurrently, it has accelerated its 2016e capex plans and lifted its 2017e growth forecasts. We have increased our 12-month target price to $6.50/sh from $5.25/sh on the maintenance of our prior 2017e EV/DACF target multiple. Decent stock price performance leading up to this announcement, coupled with market expectation that Storm could accelerate its program and i