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GAS [BUY +20.9%] - Removal of Wild Orchid risk brightens 2019 outlook - Update

We cut our target price for GAS by 6.0% due to a higher risk premium and a lower target P/E. We also removed a 5% discount for political risk associated with the Wild Orchid gas field in the new target price. We maintain our 2018 recurring NPAT growth forecast of 29.5% YoY due to a 3.6% increase in volume, a 23.1% increase in FO price and a 7.4% rise in LPG price. 2019 earnings should be good with 3% volume growth, Wild Orchid coming online in late 2018 and Ca Mau GPP offsetting an input