Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on STORM RESOURCES LTD. We currently have 23 research reports from 1 professional analysts.
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STORM RESOURCES LTD
STORM RESOURCES LTD
Storm Announces Processing Agreement, Capex Acceleration
09 Sep 16
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 its relative trading illiquidity, could see the stock reflect only partially the kind of CFPS uplift we forecast.
ANNOUNCES PROCESSING ARRANGEMENT AT UMBACH AND INCREASED 2017 PRODUCTION GUIDANCE
08 Sep 16
Impact: Positive. This processing arrangement and capex acceleration has 2017e volumes moving higher on $20 mm increase in 2016e capex and unchanged 2017e capital program, with Storm benefitting from reduced (15%-20%) operating costs. This is positive to our estimates, likely driving 2017e CFPS +20% higher. With this deal representing 55% of projected Umbach processing footprint come January 2017e, we view this as a bridge in the medium term as Storm works towards a longer term solution (ie. operated gas plant).
Reports Second Quarter Results
16 Aug 16
Storm reported second quarter financial and operating results that were in line with our and the market’s expectations. The Company has largely reaffirmed its 2H16e guidance and provided a preliminary 2017e outlook that is effectively in line with our prior view. It could accelerate efforts in 2H16e on confirmation of price recovery, and while its 2017e outlook implicitly offers a slightly lower growth target on lower investment than our prior forecast, there should be no surprises to market estimate adjustments on receipt of this report. We have reduced our 12-month target price to $5.25/sh from $5.50/sh on the maintenance of our prior 2017e EV/DACF target multiple.
2Q16e Quarterly Preview
26 Jul 16
Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.
Intermediates, Mid Caps & Small Cap Commodity Price Update
23 Jun 16
With this publication we highlight forecast revisions associated with our commodity price update (Natural Gas Update; Crude Oil Update), reaffirming a view of commodity price recovery in 2017e. In the interim until then, 2016e Canadian oil price realizations are up ~11% in the synthetic and Edmonton Light streams, with heavy WCS crude up ~20% which is amplified by Canadian oilsands output curtailments. While 2016e Canadian natural gas prices are projected to be ~20% lower, we expect much of this effect to be mitigated by strong hedging positions this year, and remain focused on price recovery next year with very strong increases reflected in both the strip and our revised forecast. Overall, broad valuations are flat to slightly higher coming out of this exercise, with oil/ liquids levered entities observing the highest 2017e CFO uptick. We remain constructive on the space, though the market will need to look past a trough of potentially weak pricing this summer.
Reports First Quarter Results, Tempers 2016e Growth Initiatives
13 May 16
Storm reported first quarter financial and operating results that were in line to ahead of expectations. As telegraphed, Storm has formally reduced its capital investment outlook for 2016e once again in light of sustained weak natural gas prices, delaying the construction of its 3rd Umbach compression facility to April 2017e, now offering ~$40 mm capex for 2016e to achieve 15,500-16,000 boe/d and exit the year at 13,000-14,000 boe/d. We continue to believe the market will endorse the Storm business strategy in this cycle, with no changes to our valuation or ranking coming off of this report.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
Minor delay but lower cost and better visibility enhance the investment profile
13 Jan 17
First oil at Stella is delayed by about a month, reducing the contribution of Stella to FY17 production by the same period. While this has an impact on FY17e free cash flow, this is negligible to our valuation. More importantly, FY17 opex are estimated at only US$18/boe, below our estimates of US$20/boe. There are opportunities to reduce opex further. Harrier is expected to reach first oil in 2018, one year earlier than we expected and at a cost of US$40 mm lower than we anticipated. The overall development cost is less than US$6.0/boe. Ithaca holds numerous discoveries around Stella that would be developed with a similar cost structure to Harrier.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.