ROCC - Ranger Oil cut at Truist after Q4 miss no full-year guidance

2023-03-09 15:51:14 ET

Ranger Oil ( NASDAQ: ROCC ) -2.7% in Thursday's trading as Truist downgrades shares to Hold from Buy with a $43 price target, trimmed from $52, after Q4 earnings and free cash flow came in lower than expected, driven mostly by weaker than forecast production.

Not surprisingly, Ranger ( ROCC ) did not issue FY 2023 guidance given the February 28 announced merger agreement with Baytex Energy .

While Q4 production was lower than expected, current production of 50K-plus boe/day - which the company expects to sustain through the quarter - is higher than predicted, according to Truist's Neal Dingmann.

Ranger Oil ( ROCC ) continues to deliver solid free cash flow, returning cash to investors with opportunistic buybacks and a quarterly dividend, Dingmann wrote.

Ranger Oil ( ROCC ) shares have gained 6% so far this year and 7% during the past 12 months .

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