Karoon Has Trust Issues Following Who Dat Output Downgrade -- Market Talk

Dow Jones04-22

2348 GMT - Karoon Energy is demonstrating itself to be accident-prone, after lowering expectations for output from the Who Dat field in the U.S. Gulf of Mexico, Citi says. It says the downgrade is a bitter pill for investors to swallow so soon after Karoon raised more equity than it needed for the acquisition. In a note, analyst James Byrne says the Who Dat issues are a deferral of production, rather than an impairment of reserves. "The discounted cash flow impact of the deferral, under our conservative assumptions, is small so the equity looks cheap," he says. "Regardless, it's the impact to investor trust that is more troublesome as management are already considering the next deal." Citi retains a buy call on Karoon's stock. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

April 21, 2024 19:48 ET (23:48 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2429032957?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-04-22 07:48","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2429032957","market":"us","top_or_hot":-1,"title":"Karoon Has Trust Issues Following Who Dat Output Downgrade -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     2348 GMT - Karoon Energy is demonstrating itself to be accident-prone, after lowering expectations for output from the Who Dat field in the U.S. Gulf of Mexico, Citi says. It says the downgrade is a bitter pill for investors to swallow so soon after Karoon raised more equity than it needed for the acquisition. In a note, analyst James Byrne says the Who Dat issues are a deferral of production, rather than an impairment of reserves. \"The discounted cash flow impact of the deferral, under our conservative assumptions, is small so the equity looks cheap,\" he says. \"Regardless, it's the impact to investor trust that is more troublesome as management are already considering the next deal.\" Citi retains a buy call on Karoon's stock. (david.winning@wsj.com; @dwinningWSJ) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  April 21, 2024 19:48 ET (23:48 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Karoon Has Trust Issues Following Who Dat Output Downgrade -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nKaroon Has Trust Issues Following Who Dat Output Downgrade -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-22 07:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>2348 GMT - Karoon Energy is demonstrating itself to be accident-prone, after lowering expectations for output from the Who Dat field in the U.S. Gulf of Mexico, Citi says. It says the downgrade is a ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KAR.AU","symbol_name":"KAROON ENERGY LTD","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2429032957","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2429032957","pubTimestamp":1713743280,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"2348 GMT - Karoon Energy is demonstrating itself to be accident-prone, after lowering expectations for output from the Who Dat field in the U.S. Gulf of Mexico, Citi says. It says the downgrade is a bitter pill for investors to swallow so soon after Karoon raised more equity than it needed for the acquisition. In a note, analyst James Byrne says the Who Dat issues are a deferral of production, rather than an impairment of reserves. \"The discounted cash flow impact of the deferral, under our conservative assumptions, is small so the equity looks cheap,\" he says. \"Regardless, it's the impact to investor trust that is more troublesome as management are already considering the next deal.\" Citi retains a buy call on Karoon's stock. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"KAR.AU":"KAROON ENERGY LTD","BK7142":"石油与天然气的勘探与生产"},"translate_title":"Karoon在世卫组织下调产出后出现信任问题——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KAR.AU":0.9},"content_text":"2348 GMT - Karoon Energy is demonstrating itself to be accident-prone, after lowering expectations for output from the Who Dat field in the U.S. Gulf of Mexico, Citi says. It says the downgrade is a bitter pill for investors to swallow so soon after Karoon raised more equity than it needed for the acquisition. In a note, analyst James Byrne says the Who Dat issues are a deferral of production, rather than an impairment of reserves. \"The discounted cash flow impact of the deferral, under our conservative assumptions, is small so the equity looks cheap,\" he says. \"Regardless, it's the impact to investor trust that is more troublesome as management are already considering the next deal.\" Citi retains a buy call on Karoon's stock. (david.winning@wsj.com; @dwinningWSJ) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  April 21, 2024 19:48 ET (23:48 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2429032957"}