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Investing.com - Roth/MKM initiated coverage on Saturn Oil & Gas Inc (TSX:SOIL) with a Buy rating and a price target of C$6.00, citing compelling valuation metrics and strong operational results.
The research firm highlighted Saturn’s focus on maximizing returns and free cash flow through acquiring undervalued mature assets with development potential and generally low declines.
Saturn has been Canada’s fastest-growing energy company in recent years, expanding production by 456% from the first quarter of 2022 to the first quarter of 2025, according to Roth/MKM.
This growth stems primarily from four major acquisitions between 2021 and 2024, totaling approximately C$1.4 billion, with the company paying roughly twice cash flow on average for these assets.
Roth/MKM expects increasing free cash flow from Saturn’s operations will likely position the company to continue paying down debt or pursue additional acquisitions as a market consolidator.
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