In a report released today, Gabriele Sorbara from Williams Capital reiterated a Buy rating on Extraction Oil & Gas (XOG), with a price target of $8. The company’s shares closed yesterday at $3.81, close to its 52-week low of $3.14.
Sorbara noted:
“We reaffirm o ur Buy. Key Points 4Q18 oil producon beats by over 9%. We calculate 4Q18 clean EPS and DCFPS at ($0.02)/$0.83, vs. our esmates of $0.04/$0.82 and Con sensus of $0.08/$0.85. 4Q18 producon was 85.8 Mboe/d, 9.2% beer than o ur esmate of 78.5 Mboe/d and 7.0% ahead of Mboe /d. More importantly, 4Q18 oil producon was 46.6 Mbbls/d, 9.6% above ou r esmte of 42.5 42.6 Mbbls/d. XOG turned to sales 50 gross (43 net) operated wells with an average lateral length of ~7,400 feet, and completed 20 gross (16 net) wells with an average lateral length of ~10,000 feet. The producon beat is magnified by D&C capex comi ng in at $130.3 million, 14.8% below our esmte.”
According to TipRanks.com, Sorbara is ranked 0 out of 5 stars with an average return of -9.9% and a 34.1% success rate. Sorbara covers the Basic Materials sector, focusing on stocks such as Gulfport Energy Corp, Oasis Petroleum Inc, and Carrizo Oil & Gas.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Extraction Oil & Gas with a $10.33 average price target.
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Based on Extraction Oil & Gas’ latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $61.85 million. In comparison, last year the company had a GAAP net loss of $30.57 million.
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Extraction Oil & Gas, Inc. operates as an independent oil and gas company, which focuses on the acquisition, development and production of oil, natural gas and NGL reserves. The company was founded by Mark A. Erickson, Matthew Owens and Jesse Silva in December 2012 and is headquartered in Denver, CO.
