10-08-2015, 12:19 AM
InterOil (NYSE: IOC) is in watch after Bernstein analyst Neil Beveridge said the company could be the next M&A target for LNG majors.
The analyst highlighted:
Following Oil Search rejection of Woodside's bid, we think a bid for IOC could make sense, given this is where much of the growth optionality is in PNG. At US$1.2/boe on 2C resources (inc. future payments) InterOil is cheaper than organic exploration.
InterOil's valuation hinges upon the scale of resource certification at Antelope which is scheduled for 2Q16. We remain positive on the outcome with reserves expected in the 6-9TCF range, based on positive drilling and well test results.
With US$541M in total liquidity and Total certification payment expected in mid-2016, InterOil's balance sheet is strong enough to support exploration, appraisal and LNG FEED activities.
The firm maintained an Outperform rating and price target of $65 on IOC.
For an analyst ratings summary and ratings history on InterOil click here. For more ratings news on InterOil click here.
Shares of InterOil closed at $37.38 yesterday.
The analyst highlighted:
Following Oil Search rejection of Woodside's bid, we think a bid for IOC could make sense, given this is where much of the growth optionality is in PNG. At US$1.2/boe on 2C resources (inc. future payments) InterOil is cheaper than organic exploration.
InterOil's valuation hinges upon the scale of resource certification at Antelope which is scheduled for 2Q16. We remain positive on the outcome with reserves expected in the 6-9TCF range, based on positive drilling and well test results.
With US$541M in total liquidity and Total certification payment expected in mid-2016, InterOil's balance sheet is strong enough to support exploration, appraisal and LNG FEED activities.
The firm maintained an Outperform rating and price target of $65 on IOC.
For an analyst ratings summary and ratings history on InterOil click here. For more ratings news on InterOil click here.
Shares of InterOil closed at $37.38 yesterday.