UPDATE: Wunderlich Securities Cuts PT to $9 on Endeavour International Post Terminated Agreement
Wunderlich Securities reiterated its Buy rating on Endeavour International (NYSE: END) but reduced its price target from $11 to $9.
Wunderlich Securities noted, "Endeavour (END) announced on December 17, 2012 that the purchase agreement with ConocoPhillips (COP-NR) specific to the MacCulloch and Nicol Fields was terminated. The reason is a failure to agree on collateral required for future decommissioning costs between the various working interest partners. We adjusted our NAV to remove roughly 7 mmboe of proved reserves assigned to MacCulloch and Nicol and took off 2,500 boepd of production associated with these fields in 2013. This resulted in a reduction of $2 in NAV and 17% impact on 2013 cash flow; this isn't great, but the basic model is still intact."
Endeavour International closed at $5.19 on Monday.
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