Energy producers enjoy lift from the declining A$ - Aurora Oil & Gas (AUT, $2.96, Mkt cap $1,400M); Oil Search (OSH, $7.81, Mkt cap $10,465M); Sundance Energy (SEA, $0.90, Mkt Cap $380M); Beach Petroleum (BPT, $1.15, Mkt cap $1,450M).
Sundance Energy (SEA) - is well funded to support its aggressive work program in the Eagle Ford and Mississippian/Woodford acreage. Recent results at both its Eagle Ford and Mississippian project highlight that SEA is outperforming its guidance in terms of both economics and pace of drilling. We see production increasing rapidly in 2HCY13 and estimate CY13 exit rate of 5,500 boe/d. As per OSH and AUT, SEA provides a translational boost in valuation for Australian shareholders. SEA remains our preferred exposure amongst the US unconventional energy companies. TRADING BUY $1.60/sh
