Earthstone Energy's Acquisition Of Novo Assets Lauded By Analyst, Hikes Price Target
Portfolio Pulse from Nabaparna Bhattacharya
Earthstone Energy (ESTE) acquires Novo Oil & Gas Holdings for $1.5 billion, while Northern Oil & Gas (NOG) acquires a 33.33% stake in Novo assets for $500 million. Analyst Mike Scialla of Stephens & Co. reiterates an Overweight rating on ESTE and raises the price target to $21 from $18.
June 16, 2023 | 5:32 pm
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POSITIVE IMPACT
Earthstone Energy acquires Novo Oil & Gas Holdings for $1.5 billion, improving inventory depth and quality. Analyst raises price target to $21 from $18.
The acquisition of Novo Oil & Gas Holdings by Earthstone Energy is expected to improve the depth and quality of ESTE's inventory. This positive development has led the analyst to raise the price target for ESTE, indicating a potential upside for the stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Northern Oil & Gas acquires a 33.33% stake in Novo assets for $500 million, following Earthstone Energy's acquisition of Novo Oil & Gas Holdings.
Northern Oil & Gas's acquisition of a 33.33% stake in Novo assets for $500 million is a significant investment for the company. This acquisition, following Earthstone Energy's acquisition of Novo Oil & Gas Holdings, indicates a positive development for NOG and could lead to a short-term upside for the stock.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80