Unfortunately, Macquarie assesses the balance sheet has become “the strategy” for Cooper Energy and the main uncertainty is the capital requirements at the Sole/Orbost project.
A finance facility adjustment is expected to be finalised in the next few weeks and new gas sales contracts for Otway are to be negotiated.
The broker envisages upside for the shares if refinancing goes well, if the Cooper Basin oil acreage is divested and/or Sole production rates improve. Neutral maintained. Target is $0.32.
Sector: Energy.
Target price is $0.32.Current Price is $0.28. Difference: $0.04 – (brackets indicate current price is over target). If COE meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
