Research firm Macquarie Equities Research lowered its target share price for Emerge Oil and Gas Inc. (EME:TSX) to C$2.25 from C$2.75 and reaffirmed its NEUTRAL rating for the company. This downgrade was largely due to the company's ambiguous plans for its future growth and financing. Emerge currently has a market value of C$130.21 million. The company's stock closed at C$1.37 on August 16 and opened at C$1.41 on the next day. During the last 52 weeks, Emerge's stock hit a high of C$3.99 and reached a low of C$1.23.
The junior oil and gas company released its second quarter results on August 15, which stated funds from operation (FFO) of C$0.14 that were above Macquarie's estimates and production of 5.8 million barrels of oil equivalent per day that was slightly below the research firm's predictions. This slight uptick in FFO was created by reduced operating costs and higher-than-expected prices. Declining sales of natural gas led to less-than-expected production.
Emerge Oil and Gas Inc. is headquartered in Calgary, Alberta. The company primarily focuses on East-Central Alberta and Lloydminster.