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Tenaz Energy
TNZ-T
BUY
Nov 17, 2023
N/A
Stock price when the opinion was issued
Energy
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TOP PICK
It just closed a deal with a consortium that ran assets in the Dutch North Sea. These were neglected assets so with new technology and capitalization there is enhanced recovery. The assets in this acquisition are phenomenal. The CEO used to be with Vermilion and has a lot of credibility. He has set up a $140 million debenture to work on anther venture. Buy 5 Hold 0 Sell 0
(Analysts’ price target is $23.18)
Energy
TNZ reported Q3 EPS at $0.71 which beat analysts’ estimates of $0.007. Revenue came in below forecasts of $16.6M at $15.05M, nearly doubling year-over-year. Fund flow from operations (FFO) was $4.8M or $0.16 per diluted share versus the same period a year prior at $2.3M and $0.08 respectively. TNZ closed the acquisition of XTO Netherlands in Q3 to increase position in the Dutch North Sea (DNS). Net income was $21M up from $0.2M in the prior year due to the estimated gain from the XTO acquisition. TNZ expects Q4 production to increase significantly, mainly driven by contributions from new wells at Leduc-Woodbend, whereas annual production guidance post XTO acquisition is unchanged. Share prices for TNZ have increased sharply since June, up +110.23% year-to-date. Q3 was solid for TNZ with strong revenue growth and recent acquisitions being positive indicators. Conversely, cash from operations is just slightly positive and has declined in recent quarters, while also continuing to face small cap risks and being tied to the performance of oil.
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