Financial services firm Raymond James maintained its OUTPERFORM rating for junior oil and gas company Twin Butte Energy Inc. (TBE:TSX) and lowered its target stock price for the company to C$3.50 from C$3.75. Twin Butte reduced its guidance but its most recent reports of cash flow per share (CFPS) and production were in line with the expectations of Raymond James.

Twin Butte released is 2Q financial results on the morning of August 15, and its CFPS of C$0.13 hit Raymond James's expectations. Twin Butte reported that its 2Q production hit 7,556 barrels of oil equivalent per day, which was on track with the financial services firm's predictions. Production did not increase in 2Q from 1Q, but the company managed to drill 32 wells during the period.

Raymond Jame's reduced target share price is based on its SUPER NAV estimate of C$4.48 for 2011, and a 4x multiple of its predicted 2012 CFPS estimate of C$0.66. In the last 52 weeks, the company stock has hit a low value of $1.25 and a high value of $3.52.