· We revisit our investment case on Oil & Gas Development Company Ltd (OGDC), where we reiterate our ‘BUY’ stance on OGDC with a NAV-based Dec’24 target price of PkR180/share, offering a 30% upside from the last close.

· The past year has been a testament to OGDC’s growth and potential, marked by significant achievements in production sustainability. The company made major discoveries, including Toot Deep-1 (+882bpd), Chak-5 (+2k bpd), Kharo-1 (+14.3 mmcfd), and completed several production revival projects.

· OGDC remains the leading E&P company in terms of auction participation, having secured over 50% of exploration leases offered since FY21.

· As authorities strive to narrow the gap between gas cost and sale price (hikes of over 2x for SNGPL since FY22), we anticipate a significant slowdown in circular debt buildup by FY25 and beyond.

Courtesy – AKD Research