Macquarie upgrades to outperform

[kkozkkoz]

UPGRADE: InterOil (IOC) upgraded by Macquarie from Neutral to Outperform.

[Palm]

Was just going to post:

InterOil Upgraded to Outperform by Macquarie (IOC) August 4th, 2015 -

0 comments - Filed Under - by Jennifer Langley Share on StockTwits

InterOil logoInterOil (NYSE:IOC) was upgraded by equities research analysts at Macquarie from a “neutral” rating to an “outperform” rating in a note issued to investors on Tuesday, Analyst Ratings.Net reports. Other equities research analysts have also recently issued research reports about the stock. Zacks upgraded shares of InterOil from a “hold” rating to a “buy” rating and set a $53.00 target price on the stock in a report on Thursday, May 28th. Morgan Stanley reiterated an “overweight” rating and issued a $85.00 price target (up from $60.00) on shares of InterOil in a research report on Thursday, June 25th. Finally, Goldman Sachs upgraded shares of InterOil from a “neutral” rating to a “buy” rating in a research report on Monday. Six analysts have rated the stock with a buy rating, The stock has an average rating of “Buy” and a consensus target price of $65.36. InterOil (NYSE:IOC) traded up 2.31% during midday trading on Tuesday, hitting $43.49. 44,679 shares of the company were exchanged.

The stock’s market capitalization is $2.15 billion. InterOil has a 1-year low of $33.23 and a 1-year high of $63.32. The stock has a 50 day moving average of $50.73 and a 200-day moving average of $47.38. InterOil (NYSE:IOC) last posted its quarterly earnings results on Tuesday, May 12th. The company reported ($0.44) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.58) by $0.14. The firm had revenue of $13.20 million for the quarter, compared to analysts’ expectations of $1.10 million. Equities analysts expect that InterOil will post ($1.58) earnings per share for the current year.

InterOil Corporation is an independent oil and gas business with a focus on Papua New Guinea. The Company’s assets include an interest in one of Asia’s undeveloped gas fields, Elk-Antelope, in the Gulf Province, exploration licenses covering approximately 4 million acres, Papua New Guinea’s oil refinery, and retail and commercial petroleum distribution facilities throughout the country. Its business activities in exploration, refining and distribution provide fuel for the nation and generate millions of dollars in revenue for the Government. The area is divided into four Petroleum Prospecting Licenses (NYSE:IOC) and two Petroleum Retention Licenses. The Company holds the PPLs for six years, from March 2014. As of August 13, 2012, the Company announced confirmation of gas and an increased condensate ratio in 131 feet of pay in the lower of two reservoir intervals based on cased hole testing in the Triceratops-2 well.

[ArtM72]

Good news. Too bad this piece suffers from the same programming error as almost every other computer generated release stating IOC still has refinery and downstream operations. I wonder what it would take to correct that error. Maybe if/when news services finally get that correction made it will be a signal to buy or sell.

PS Nice adder from 8/13/12 about Triceratops 2. I wonder what the context of that comment was supposed to be.

[Palm]

Grabbing info from anywhere it appears. Hopefully someone will post the actual info from Mac.

[Gator]

Full report PDF attached.

[Getitrt2]

FROM REPORT:

'We see the strong prices paid by both TOTAL and Oil Search as reassuring for Elk/Antelope." Too bad the market did not perceive the deal that way in December of 2013!

"IOC's current share price is now implying a resource size of approximately 6.9tcfe gross resource size for Elk/Antelope (with little value attributed to exploration upside)." A 7.1tcfe resource would provide "$600 million in interim resource payments (that would fall due following the independent resource assessment) and a further $420 million of (additional) resource payments at FID." On that basis, they show that just 8.4tcfe gross resource size would translate to only $60 per share!!!! Think the stock is under-valued???!!! Where are these overly conservative cowards at Macquarie and GS getting those low targets???

"Following the sale of the downstream business for US$527m last year, IOC’s greater upstream focus simplifies the story which will now be determined by the improving prospects for an Elk/Antelope development and IOC’s growing discovered resource in surrounding acreage (with an estimated 8tcfe of unrisked contingent resource across the Raptor, Bobcat and Triceratops discoveries). This more transparent view of the jewels in the IOC portfolio may encourage upstream focused LNG players in the region to taking a closer look at IOC."

"Having progressively sold its ~19% stake in IOC over recent months, Chandler Corporation’s exit leaves a more open register of institutional funds (with the top 10 holding ~50%) that could be receptive to an appropriate offer."

"A potential bidder could wait until there is greater confidence around the Elk/Antelope resource size."

"LNG offtakers are likely to look to uncontracted proposed LNG projects to underpin future supply." This would seem to bode well for Total finding buyers for the gas in the future.

[jft310]

Great post getit tell these rascals we don't have oil and our value is determined by the size of our assets certified. Shame on Macquarie and Goldman for not taking more time to understand the recent Interoil presentations . Macquarie is lower than the lowest professional estimates GCA at 7.1 T's . To think they know more than the professional reservoir engineering firms is hilarious !!!Shame !!

[Palm]

Dang anal-ists!! No one understands us but us!!

[sageo]

Dang anal-ists!! No one understands us but us!!

Palm - Thanks for today's chuckle !

[MartiniStocks9756]

I would like to hear some reasons why we should not have a pit in our stomachs that the Board of Directors would not accept a low ball bid $65-$85 and the largest shareholders sell everything out from under us. The stock price and the one year projections by all of our wonderful analysts is concerning. Of course I hear the bigs only want a sure thing and will be patient. Okay, the gamble to take the company out now is much lower at this nice price of $43 with 50 million shares and let's say a 50% (being generous) premium to $65 offer versus waiting until $75 and a 50% offer at $112. Why wouldn't one of these companies, Woodside, Exxon, Total, Shell and many others take the risk and save 2.4 billion if my math is correct and take a swing for $3.2 billion. And 50% seems generous as compared to other offers I have seen recently in the marketplace. Since there are no guarantees and everyone here wants maximum return tell me I am a wackadoodle for worrying. Or yes a bidding war could be started but really????