KrisEnergy

KrisEnergy: CS initiated on the counter with an Outperform rating and TP of $0.93, implying a 16% upside from the its last close. KrisEnergy's portfolio of 19 assets offers a blended exposure to oil & gas assets in five countries. The company's work programme includes bringing online two oil fields in Thailand in 2015 which should transform its production and earnings profile. Thereafter, KrisEnergy has a strong pipeline of projects in Indonesia, Cambodia and Thailand. KrisEnergy's production could reach 20,000 boe/d in 2016, 7x from the base of 2,900 boe/d in 2013, when the two fields in Thailand start first oil next year. Its production has the potential to grow up to 40,000 boe/d in 2018-19 if the company brings assets under appraisal into fruition. With unrisked valuation at $1.47/share, there is 58% upside potential from current the TP of $0.93 when KrisEnergy fully develops its assets. The stock is inexpensive on 2.4x of EV/(2P+2C) multiple relative to peers trading at a global median of 4x. The company owns a large exploration potential which is yet to be fully priced into the valuation.