Ann: Q3 FY21 Quarterly Report, page-31

Cooper Energy is an Australian oil and gas exploration company with assets in the Cooper Basin in South Australia. It has been listed since 2002.

	LAST PRICE	CHANGE +/-	CHANGE %	VOLUME
$0.26 29 Apr 2021	0.000 OPEN $0.26	0.000 HIGH $0.26	3,909,763 LOW $0.26

TARGET

$0.3638.5% upside

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FNARENA'S MARKET CONSENSUS FORECASTS

TITLE	FY19 ACTUAL	FY20 ACTUAL	FY21 FORECAST	FY22 FORECAST
EPS (cps)	- 0.8	- 5.3	- 3.7	1.1
DPS (cps)	0.0	0.0	0.0	0.0
EPS Growth	N/A	N/A	N/A	N/A
DPS Growth	N/A	N/A	N/A	N/A
PE Ratio	N/A	N/A	N/A	23.0
Dividend Yield	N/A	N/A	0.0%	0.0%
Div Pay Ratio(%)	N/A	N/A	N/A	0.0%

Dividend yield today if purchased 3 years ago:0.00%

HISTORICAL DATA ARE ALL IN AUD

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TITLE	2015	2016	2017	2018	2019	2020
EPS Basic	-16.0	-8.4	-1.9	1.8	-0.8	-5.3
DPS All	0.0	0.0	0.0	0.0	0.0	0.0
Sales/Revenue	39.1 M	20.3 M	34.6 M	67.5 M	76.0 M	79.1 M

EPS Basic

201520162017201820192020-20-10010

DPS All

20152016201720182019202000.250.50.751

Sales/Revenue

201520162017201820192020020406080

This is work in progress. Bear with us. It'll be amazing.

NegativeGrowthSlowing

EXPERT VIEWS

Display All Commentary

Sentiment Indicator

0.2

No. Of Recommendations

5

BROKER	DATE	RATING	RECOMMENDATION
Morgans	20/04/2021	3	Hold
TARGET PRICE $0.30 % TO REACH TARGET 15.38% COMMENTARY Morgans hopes a good third quarter result (solid production, sales and revenue) signals future strong cash flow generation for the beginning of the fourth quarter, when seasonal gas demand strengthens. The Hold rating and target of $0.30 are maintained. While the broker sees plenty of value on offer, short-term risks around ramping up production at Sole weigh. In addition, negotiations continue with banks to restructure a debt facility to reflect the longer ramp up. FORECAST Morgans forecasts a full yearFY21dividend of0.00cents and EPS ofminus -0.50cents. Morgans forecasts a full yearFY22dividend of0.00cents and EPS of1.20cents.
Macquarie	20/04/2021	3	Neutral
TARGET PRICE $0.32 % TO REACH TARGET 23.08% COMMENTARY March quarter production and revenue were in line with expectations. Macquarie notes there is growth in gas from the Otway and Gippsland Basins but the company may need more capital to fund its ambitions. Moreover, without a solution to lifting Orbost gas plant utilisation the risk profile remains high and the broker envisages better risk/reward in Senex Energy ((SXY)) and Karoon Energy ((KAR)). Neutral rating and $0.32 target retained. FORECAST Macquarie forecasts a full yearFY21dividend of0.00cents and EPS ofminus -1.80cents. Macquarie forecasts a full yearFY22dividend of0.00cents and EPS of0.90cents.
Morgan Stanley	20/04/2021	3	Equal-weight
TARGET PRICE $0.38 % TO REACH TARGET 46.15% COMMENTARY Cooper Energy released third-quarter production results. While performance at the Sole project was in line with the company's guidance, it was below earlier forecasts, points out Morgan Stanley. Morgan Stanley notes a lingering uncertainty as to whether Cooper will realise 68 TJ/day at the Sole project over the medium term. Equal-weight retained. Target is 38c. Industry view: Attractive. FORECAST Morgan Stanley forecasts a full yearFY21dividend of0.00cents and EPS ofminus -2.00cents. Morgan Stanley forecasts a full yearFY22dividend of0.00cents and EPS ofminus -1.00cents.
Ord Minnett	20/04/2021	1	Buy
TARGET PRICE $0.46 % TO REACH TARGET 76.92% COMMENTARY Remediation work at the Sole/Orbost project has meant significantly better plant output. Additionally, Ord Minnett suspects the ruling on Origin Energy's ((ORG)) and Beach Energy's ((BPT)) gas contract has positive implications for Cooper Energy, given the increasing amount of uncontracted gas. The broker believes Cooper Energy is is the cheapest exploration & production company under coverage and retains a Buy rating. Target rises to $0.46 from $0.45. FORECAST Ord Minnett forecasts a full yearFY21dividend of0.00cents and EPS ofminus -1.00cents. Ord Minnett forecasts a full yearFY22dividend of0.00cents and EPS of2.00cents.

It's hard to justify the sp given the recent cash burn for project development and its negotiation power with banks to increase its debt facility.

Oil& condensate sale was only account for 10% compared to gas sale and why the company hedged the OC price on the back of rising poo?

Gas sale contract was lowered every quater amid Victoria is entering winter season where solar energy could spur the price of gas.