The Globe and Mail reports in its Saturday edition that BMO analyst Ray Kwan says Pengrowth Energy ($2.08) is "getting over the hump." The Globe's David Leeder writes in the Eye On Equities column that Mr. Kwan rates Pengrowth "market perform" in new coverage. Mr. Kwan targets the shares at $2.25. Analysts on average target the shares at $1.86. Mr. Kwan says in a note: "Since the onset of the commodity downturn, Pengrowth has been studious in addressing its debt issue: net aggregate debt has fallen by 19 per cent over the past year and is expected to be $1.59-billion by year-end 2016 (from $1.95-billion in 2015) via capex reductions, monetization of FX hedges, core/non-core asset sales, and the suspension of its dividend. Still, the company faces various near-term challenges, including over $600-million of debt maturities in 2017 and a potential covenant breach over the next 12–18 months at current strip prices." Without further asset sales, Mr. Kwan projects Pengrowth to breach its debt covenants in mid-2017. He says the company's alternative financing options include equity, sale of a "gross overriding royalty" on production, a mid-stream sale, drilling financing and further trimming of debt.