((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
November 14 – ** Coterra Energy CTRA.N said it would buy assets in New Mexico for a total of $3.95 billion in two separate transactions
**Median PT of 25 analysts is $32
IMMEDIATE INCREASE IN ACTIVITY; INCREASE IN PRODUCTION
**Barclays (“overweight”) increases PT from $31 to $33; says the acquisition adds a central development area in northern Delaware with significant potential for optimizing operations; brokerage house's preliminary estimates show acquisitions increase CFPS by 12% in 2025-2026
** Truist Securities (“buy”) increases PT from $31 to $33; says “the additional assets should eliminate any short stock thesis on the company”
** “The transaction is expected to be initially accretive, although we believe the company could also add additional accretion by potentially adding various public operators in the area, which we believe is not out of the question at some point later” – Truist Securities
**TD Cowen (“buy”, PT: $31) says assets help Coterra “move more strategically into oil”; the agreement should allow a 13%+ increase in FCFS in 2025
**Raymond James (“overweight”) increases sales price from $31 to $35 due to improving production outlook
**Morgan Stanley raises PT from $27 to $29, Piper Sandler raises PT from $31 to $33, JP Morgan raises PT from $24 to $29
