NEW YORK (TheStreet) -- Shares of TransGlobe Energy Corp. (TGA) are up 3.91% to $7.44 after the company said its previously announced arrangement with Caracal Energy CRCL was terminated after Caracal agreed to be taken over by Glencore GLNCY, the Wall Street Journal reports
TransGlobe said it received a $9.25 million break-up fee from Caracal, adding that it plans to reintroduce its previously announced dividend.
TheStreet Ratings team rates TRANSGLOBE ENERGY CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRANSGLOBE ENERGY CORP (TGA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: