In an Aug. 27 research note, analyst John White reported that ROTH Capital Partners raised its Q3/19 production estimate for Lonestar Resources Ltd (NASDAQ:LONE), "based on guidance which is supported by continuing strong well completions."
ROTH also revised its oil and gas price deck, which led to it lowering its price target on Buy-rated Lonestar to $8 per share from $11 per share. The energy company's current share price is $2.66.
White detailed ROTH's changes to its model on Lonestar, resulting from the energy company having been "consistently guiding production higher and operating costs lower."
ROTH increased its Q3/19 production projection by 11%, to 17,170 barrels of oil equivalent per day (17,170 boe/day) from 15,505 boe/day. ROTH also raised its projected cash flow per share for Q3/19 to $1.02, up from $0.84. Its new EBITDA estimate is $35 million, up from $32.9 million.
As for changes to its near- and medium-term oil price estimates, ROTH lowered its West Texas Intermediate (WTE) estimates for Q3/19 to $56 per barrel ($56/bbl) from $57 and for Q4/19, to $54/bbl from $57, White relayed.
For the Henry Hub price in Q3/19, ROTH predicts $2.20 per million British thermal units (2.20/MMBtu) versus $2.20 and in Q4/19, $2.25/MMBtu versus $2.40.
As for 2020 forecasts, ROTH now expects a WTI crude oil price of $52.25/bbl versus $54.75 and a Henry Hub price of $2.40/MMBtu as opposed to $2.49.
ROTH has a Buy rating on Lonestar Resources.