At least five brokerages raise their PTs on Crew Energy Inc after they said on Thursday it completed sale of certain non-core assets at Attachie and Portage areas of northeast British Columbia for gross proceeds of C$130 mln ($100.11 mln).
Crew will utilize proceeds toward a partial redemption of a C$300 mln 2024 note.
“Unsurprisingly surprising, the company delivers an entirely unexpected non core asset sale, significantly de-levering the company and compounding the value potential that was reflected through the strength of its second-quarter results,” said the National Bank Of Canada.
Disposition proceeds allow CR to reduce its outstanding term debt, providing further flexibility as it looks to refinance remaining principal amount, says ATB Capital Markets.
“The company is one of the last remaining, gas-weighted, mid-cap names in B.C., and likely one of the few ways an LNG operator could secure gas molecules without contracting a multi year/global price participation agreement with other majors in the province,” said Raymond James.