Morningstar | Lowering Gran Tierra FVE; Stock Remains in 3-Star Territory. See Updated Analyst Note from 19 Dec 2018
We are lowering our fair value estimate for no-moat Gran Tierra Energy to $2.25 (CAD 3) per share from $2.75 (CAD 3.50) to reflect our lower near-term commodity price forecasts. The stock is trading in line with our estimate and looks fairly valued. We suggest that potential investors remain on the sidelines for now.Unless new discoveries are made, we expect the current proven and probable crude reserves in Colombia will be depleted in approximately a decade. The PetroLatina acquisition does not afford the company much extended longevity in resource production; rather, it provides increases in near-term production levels. We believe exploration activities could drive growth in a better oil price environment. However, these activities are not economical with crude prices entrenched at current levels, so the timing of additional discoveries is highly uncertain.
We are maintaining our no-moat rating.
Gran Tierra Energy, together with its subsidiaries, is a company focused on oil and gas exploration and production in Colombia. Co. is primarily engaged in the exploration and production of oil and natural gas. Co. has one reportable segment based on geographic organization, Colombia. As of Dec 31 2017, Co. had total estimated proved reserves of 59.3 million barrels of oil and natural gas equivalent, consisting of 58.9 million barrels of oil and 2.1 million cubic feet of natural gas.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.