Energy research firm Gerdes initiates coverage on Denbury, California Resources

Denbury

09/01/2023 13:29

** Brokerage Gerdes Energy Research initiates coverage on
energy firms Denbury Inc  DEN.N  and California Resources Corp
 CRC.N 
    ** Brokerage rates DEN  "neutral" with PT $93; CRC gets
"buy" with PT $52
    Denbury Inc
    ** Gerdes expects co to commence commercial CO2
sequestration in 2025 and anticipates all announced Carbon
Capture, Utilization and Storage (CCUS) projects to be 
operational in 2027
    ** Brokerage expects DEN's Q4 2022 production to be about
47.1 thousands barrels of oil equivalent per day (Mboepd),
inline with co's guidance
    ** 2023 production outlook of ~50 Mboepd represents ~6% y/y
growth - Brokerage
    ** 11 of 12 brokerages rate the stock "buy" or higher and
one "sell" or lower; their median PT is $113.5 - Refinitiv
    California Resources Corp
    ** Brokerage expects co's Q4 2022 production to be about
93.4 Mboepd, fractionally above guidance (90-93 Mboepd)
    ** 2023 production outlook of ~94.1 Mboepd represents ~3%
y/y growth - Brokerage
    ** Gerdes sees about $360 mln of free cash flow in 2023
    ** Four of five brokerages rate the stock "buy" or higher
and one "hold"; their median PT is $62.5
 (Reporting by Ankit Kumar in Bengaluru)
 ((Ankit.Kumar2@thomsonreuters.com))