Morgans is very positive on new acquisition: Despite numerous...

Morgans is very positive on new acquisition:

Despite numerous infrastructure options, as this stage we have conservatively assumed
SXY goes it alone and factored in A$200m of capex (wells and infrastructure) to deliver
the 30TJ/d. On these metrics, and with a similar opex base to WSGP, we expect the
new Surat acreage will have an attractive cash flow margin of ~A$4.50/GJ. Incorporating
the additional growth into our model has resulted in our SXY valuation increasing to
A$0.48ps (was A$0.39). We maintain our Add recommendation, with SXY also now less
exposed to oil price risk through this gas acreage addition (but still a key risk).