That’s the view of stockbroker Mirabaud Securities which today repeated a ‘buy’ recommendation, with an improved price target of 140p (from 135p).
It has been a busy time for DGOC after it stepped up from AIM to London’s Main Market, closed to asset acquisitions and is now set for inclusion in the FTSE 250 index.
“The fact so much has been achieved during a period of unprecedented volatility in financial & commodity markets is demonstrative of the resilience of the business model and stability of the underlying cash flows,” Mirabaud analyst Tim Hurst-Brown said in a note.
“In a world where dependable income affords a scarcity premium, we believe that DGOC’s dividend credentials (11.3% CY21 yield) will drive increasing interest in the stock, alongside the Main Board move and FTSE250 membership.”
On Wednesday, DGOC announced the completion of its second recent asset acquisition – picking up 6,100 wells from Carbon Energy for US$110mln.
Before that, on Tuesday, it completed a separate but similar acquisition of assets from EQT Corporation for US$112mln, bringing in 9,000 boe per day of production from 900 wells.