Tullow Oil Cut to Underperform at BofAML; Soco Raised to Buy
2015-09-01 11:50:07.867 GMT
By Angelina Rascouet
(Bloomberg) -- Tullow’s “balance sheet riskiest in lower
for longer,” scenario, BofAML says in note; cuts PT 31% to
235p.
* Tullow’s balance sheet left further stretched as net debt
rises
* Sees mkt focusing more on core value, which includes
producing assets and net cash rather than development
value w/ unsanctioned projects
* Covenant issue to remain ongoing background narrative to
equity story
* Maturity schedule doesn’t raise any imminent threat with
first scheduled repayment 20 mos. away
* Pressing concern is cut in borrowing base, reserve based
lending (RBL) facilities
* Says Tullow has most significant RBL facility of all
European E&Ps under BofAML coverage at ~140% of mkt cap
* Notes that next key review process in October
* Soco raised to buy with PT 185p; says of valuation “we like
Soco here”; co. has net cash position, unlike peers Tullow,
Premier Oil
* Sees $5m-$10m per month payments from 2005 disposal of
Mongolia interest
* Sees Lidongo X Marine-5 well as “asset that could
interest Eni”
* Tullow rising as much as 2.8% today in fifth day of gains
after falling to 10-year low in late Aug.; Soco up as much
as 9.7% in third day of gains
* Tullow leads YTD declines on FTSE 350 Oil & Gas
Producers Index at -46% in 2015, followed bt Premier
(-37%), Ophir (-31.5%); Soco -44% YTD
For Related News and Information:
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First Word newswire: NH BFW<GO>
--With assistance from Joshua Fineman in New York.
To contact the reporter on this story:
Angelina Rascouet in London at +44-20-3525-0424 or
arascouet1@bloomberg.net
To contact the editor responsible for this story:
James Herron at +44-20-3525-8705 or
jherron9@bloomberg.net
2015-09-01 11:50:07.867 GMT
By Angelina Rascouet
(Bloomberg) -- Tullow’s “balance sheet riskiest in lower
for longer,” scenario, BofAML says in note; cuts PT 31% to
235p.
* Tullow’s balance sheet left further stretched as net debt
rises
* Sees mkt focusing more on core value, which includes
producing assets and net cash rather than development
value w/ unsanctioned projects
* Covenant issue to remain ongoing background narrative to
equity story
* Maturity schedule doesn’t raise any imminent threat with
first scheduled repayment 20 mos. away
* Pressing concern is cut in borrowing base, reserve based
lending (RBL) facilities
* Says Tullow has most significant RBL facility of all
European E&Ps under BofAML coverage at ~140% of mkt cap
* Notes that next key review process in October
* Soco raised to buy with PT 185p; says of valuation “we like
Soco here”; co. has net cash position, unlike peers Tullow,
Premier Oil
* Sees $5m-$10m per month payments from 2005 disposal of
Mongolia interest
* Sees Lidongo X Marine-5 well as “asset that could
interest Eni”
* Tullow rising as much as 2.8% today in fifth day of gains
after falling to 10-year low in late Aug.; Soco up as much
as 9.7% in third day of gains
* Tullow leads YTD declines on FTSE 350 Oil & Gas
Producers Index at -46% in 2015, followed bt Premier
(-37%), Ophir (-31.5%); Soco -44% YTD
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Joshua Fineman in New York.
To contact the reporter on this story:
Angelina Rascouet in London at +44-20-3525-0424 or
arascouet1@bloomberg.net
To contact the editor responsible for this story:
James Herron at +44-20-3525-8705 or
jherron9@bloomberg.net