Morningstar bets on Strike Energy's gas plant developments, expects net debt to shrink
BUZZ-Morningstar bets on Strike Energy's gas plant developments, expects net debt to shrink ** Morningstar expects Australian Strike Energy's STX.AX net debt to decline to less than A$70 million ($49.30 million) by FY28
** Investment research firm says construction of the gas and power plant developer's South Erregulla power station is complete, West Erregulla station development is underway, paving the way to a 20% increase in gas reserves for co
** Adds that co spent A$185 million during FY26 for South Erregulla plant and doesn't expect major hiccups during commissioning of the plant
** Morningstar says this supports the Australian government's energy transition from coal-fired plants
** "In its first and second years of operation in FY27 and FY28, South Erregulla will receive government payments of A$19 million and A$31 million before any sales," Morningstar says
** Maintains fair value estimate at A$0.20 apiece, flags shares remain materially undervalued
** YTD, stock down 8.6%, as of co's last close
($1 = 1.4198 Australian dollars)
(Reporting by Aamir Sheik Khalid in Bengaluru)
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