Sharecast - Berenberg said Kistos' (LON:KIST) acquisition of Mime Petroleum had given it a stake in the Balder, Ringhorne, and Ringhorne Øst fields, offshore Norway - adding 24.0m barrels of oil equivalent of proven-plus-probable reserves and a further 30.0m mboe of contingent resources.
Overall, the German bank views the deal as accretive to Kistos and a further demonstration of the company's ability to creatively structure deals and grow the business.
"We incorporate the new assets, mark-to-market our H1 commodity prices, roll forward our NAV and make various other modelling changes – the net effect is a 5% increase in our price target to 630.0p," said Berenberg, which also reiterated its 'buy' rating on the stock.
"On our updated forecasts, Kistos is now trading on FY 2023/24 EV/EBITDA of 1.7x/2.0x, EV/DACF of 2.6x/2.3x and a FCF yield (pre-M&A) of -10%/2% respectively."
Reporting by Iain Gilbert at Sharecast.com