- My estimations show that TGA’s 2Q 2022 crude oil netbacks will be higher than in Q2 2021 and Q1 2022.
- Due to the continuing war in Ukraine and US sanctions against Iran oil, I expect oil prices to remain high for the rest of 2022.
- Thus, I estimate higher than Q1 2022 crude netbacks for Q3 and Q4 2022.
- Even if the oil price declines, the company will be preserved because of the company’s free cash flow generation ability.
- My valuation indicates that the stock is a buy and has an upside potential to reach about $5-$6.
For further details see:
TransGlobe Energy: I Expect Higher Netbacks