Global energy demand has rebounded strongly in 2021 as economies...

Global energy demand has rebounded strongly in 2021 as economies recover from lockdowns and stimulus measures are enacted.

The transition to renewable energy is gathering pace. However, existing installed electricity generation capacity and transport infrastructure remains highly reliant on fossil fuel supply.

Increased Government and financing community focus on ESG adds risk to the expansions and new projects required to replace depleting energy resources.

We believe that reduced supply reliability across oil, gas and coal, in domestic and internationally traded markets, will support stronger energy commodity prices in the medium term and support the free cash flow of incumbent producers.

CTP’s recent sell-down of interests in its Amadeus Basin producing assets significantly improved the company’s balance sheet strength and funding for future exploration.

The company’s established producing portfolio is highly prospective for resource and production growth. The assets could further benefit from a proposed new gas pipeline which would increase the Amadeus Basin’s reach into Australia’s east coast gas markets.

CTP is also appraising the Range coal seam gas project for FID in 2022 alongside joint venture partner Incitec Pivot, potentially delivering first gas from this asset into the east coast market from 2024.

Buy, Price Target $0.23