Cavendish Raises Chariot Target Price Following Etu Energias Deal
Broker Cavendish has raised its target price for Chariot Ltd (CHAR.L) to 8.3p, citing a potential 390% upside following the company's agreement with Etu Energias in Angola. The deal involves acquiring Chevron’s stake and expanding oil exposure significantly. Chariot now stands to benefit from an economic interest equivalent to 4,000 barrels of oil per day through this transaction, which could generate $14 million in distributable cash flows by 2027 under a flat $70/bbl price. Combined with prior deals, the company’s exposure is expected to reach 8,000 barrels daily. Shell Trading has agreed to fund the acquisition debt, reducing Chariot's financial risk and enhancing its balance sheet stability.
Tickers: $CVX
Topics: blockbuster deal oil production target price increase