CIBC Lifts Estimates On Pengrowth Energy, Maintains 'Sector Performer'
Thursday, January 26, 2022 12:56 PM

CIBC World Markets Inc. raised its earnings estimates on Pengrowth Energy Corp. (TSX:PGF.TO) (NYSE: PGH), while maintaining its "Sector Performer" rating on the stock.

Pengrowth announced its 2012 capital budget, guiding to a higher-than-expected capital program of $625 million, 39 percent higher than CIBC forecast of $450 million for 2012.

Production guidance for 2012 was set at 74,500 Boe/d-76,500 Boe/d, in line with CIBC forecast of 76,000 Boe/d.

Jeremy Kaliel, an analyst at CIBC, said Pengrowth's sustainability will ultimately rely on the execution of production growth in 2012 (which he sees as necessary to bring its spending and dividend within cash flow). "We will also look for a potential acquisition in the near term to help build out the company's organic inventory," he wrote in a note.

Kaliel, who has a price target of $12.00 on the stock, raised his 2011 EPS estimates for the company to $1.86 from $1.82 and 2012 EPS estimate to $1.85 from $1.68.

Shares of Calgary-based Pengrowth Energy fell 2 percent to $10.30 on the Toronto Stock Exchange. On the NYSE, the stock declined 1.24 percent to $10.32.