IPOOF - InPlay Oil (IPOOF)(IPO:CA) - Price Object More Than Doubles With Many Factors Improving

We are raising our price objective on the shares of IPOOF to $1.50 from $0.60. The increase reflects higher near-term energy price assumptions, lower basin differentials, a better currency exchange rate, decreased operating cost assumptions, improved free cash flow generation and the ability to pay down debt, a growth in the company's proved reserve position, and a shift in valuation metrics for the passing of 2020.We have updated our models to reflect 2020 results and management guidance, and are introducing new estimates. We are introducing 2022 annual and 2021 quarterly estimates with this report. Please see estimates on the front of the report or copies of our models at the end of the report for details.Management held a webcast with the investment community on March 23. In the presentation, management painted a very bullish picture for InPlay and the industry. Of note, management talked about its ability and desire to pay down debt and ultimately invest in wells with high returns. It believes energy prices are in the sweet spot for the company in the low $60/BBL. It also believes operating and drilling costs will continue to decline with a decrease in competition.InPlay remains one of the premier junior energy companies. InPlay is somewhat unique in its ability to continually grow production and reserves. Its finding and operating costs are low, and it has the ample drilling opportunities at highly profitable returns. Management has exhibited financial discipline generally operating within its cash flow and has a near-term focus on reducing debt. We believe these factors put it in a good position to both benefit from higher energy prices but also to protect itself should prices fall.Read More >>