RBC Capital's Upgrade#
RBC Capital has upgraded Tamboran Resources Corporation (NYSE:TBN) from a Sector Perform rating to Outperform. This change comes with a new price target of $55, up from the previous $38. The upgrade is attributed to positive developments in the Beetaloo Basin, a recent farmout agreement with INPEX, and a stronger global market for natural gas.
Stock Performance#
Over the past year, Tamboran Resources has seen a remarkable 70% return, with a nearly 39% increase in the last six months. However, the stock is currently trading at $35.39, which is significantly below RBC’s new price target of $55.
Beetaloo Basin and DWE Farmout#
RBC Capital views the DWE farmout as an important indicator of the Beetaloo Basin's potential value and a step towards future commercialization of the area. Despite the positive outlook, RBC maintains a Speculative risk assessment for the stock, indicating that investors should be cautious.
Funding and Equity Offerings#
Tamboran Resources has recently completed several equity offerings, raising over $50 million. This includes issuing 148,308,400 CHESS Depositary Interests (CDIs) for A$37.1 million and a public offering of 2,956,602 shares at $35 each, aiming for gross proceeds of $103.5 million. These efforts are part of a strategy to fund further drilling and resource development in key areas. The company has also granted underwriters a 30-day option to buy additional shares, reflecting its commitment to securing funding for ongoing projects.