Report

Production Growth in Uzbek Gas Fields Signals Strong 2025 Outlook

CDR, one of our top picks, has gained 28% since we initiated coverage in early October 2024. In Q3-2024, production, revenue, and operating netback remained flat QoQ, aligning with our estimates. The company’s 20-year contract with the Government of Uzbekistan to operate eight gas fields provides stability, supported by regulated natural gas pricing. While EBITDA declined 4% QoQ due to higher G&A expenses, production techniques proved effective, offsetting natural decline rates. Current production is up 7% from Q3 averages, prompting us to raise 2024 revenue and production estimates. We expect record revenue and EPS in 2024-2025, with key catalysts including updates on the LNG project in Kazakhstan and increased gas production efforts in Uzbekistan. CDR remains well-positioned for growth, leveraging proven technologies and stable pricing advantages.
Underlying
CONDOR ENERGIES INC

Provider
Fundamental Research
Fundamental Research

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Analysts
Sid Rajeev

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