Hess Corp. (NYSE:HES) enlarged its holdings in the Bakken shale, acquiring an additional 167,000 acres at a bargain price of $4,500 an acre.
"HES agreed to acquire 167,000 net acres in the Bakken shale play from privately held TRZ Energy for $1.05 billion in cash, or an attractive price of -$4,500/acre after adjusting for 4.4 MBoed of production. This is well below the $8,500/acre price paid by WMB last week, the $5,000/acre paid for AEZ’s acreage, and other recent deal metrics of $5,500-$6,500/acre. The transaction will be funded by HES’ $2.4 billion cash balance at the end of 3Q, and is expected to close by year-end," said UBS.
UBS reiterated their "Buy" rating on Hess, which was trading at $68.86, losing $0.83, or 1.19 percent at 12:32 PM EST. UBS has a price target of $78 on Hess, increasing it from $76.
Showing posts with label Bakken Shale. Show all posts
Showing posts with label Bakken Shale. Show all posts
Tuesday, November 23, 2010
Monday, October 25, 2010
Newfield Exploration (NYSE:NFX) Maximizing Returns on Asset Base
Newfield Exploration Company (NYSE:NFX) had its "Outperform" rating maintained on them by FBR Capital, citing a deep and diverse asset base.
FBR said, "Recognition of depth and diversity of asset base allowing capital allocation flexibility, and thus maximization of returns, has been well rewarded, allowing the stock to appreciate 18% during the third quarter compared to an average 8% for the peer group. Future absolute and relative outperformance/multiple expansion, successful Alberta Basin Bakken and Eagle Ford drilling and/or evidence of ability to pull forward cash flows faster (further acceleration in Monument Butte, Bakken, or other) than currently modeled is needed."
Newfield closed Friday at $59.11, gaining $0.20, or 0.34 percent. FBR raised the price target on Newfield from $65 to $72.
FBR said, "Recognition of depth and diversity of asset base allowing capital allocation flexibility, and thus maximization of returns, has been well rewarded, allowing the stock to appreciate 18% during the third quarter compared to an average 8% for the peer group. Future absolute and relative outperformance/multiple expansion, successful Alberta Basin Bakken and Eagle Ford drilling and/or evidence of ability to pull forward cash flows faster (further acceleration in Monument Butte, Bakken, or other) than currently modeled is needed."
Newfield closed Friday at $59.11, gaining $0.20, or 0.34 percent. FBR raised the price target on Newfield from $65 to $72.
Thursday, October 7, 2010
Plains Exploration (NYSE:PXP) Acquires More Eagle Ford Shale Property
Backing up its stated strategy of investing in more onshore assets, Plains Exploration & Production (NYSE:PXP) announced it has acquired property in Eagle Ford shale in Texas.
Plains spend $578 million for the acquisition, and may spend more in the area, or possibly in the Bakken Shale area of North Dakota, although the major moves the company has made are for the most part completed it said.
CEO James Flores said, "The Eagle Ford transaction adds a high-quality oil asset with substantial reserve and oil production growth opportunities."
The company added there is a lot of interest in their Gulf of Mexico offshore assets, which they have offered for sale.
Plains spend $578 million for the acquisition, and may spend more in the area, or possibly in the Bakken Shale area of North Dakota, although the major moves the company has made are for the most part completed it said.
CEO James Flores said, "The Eagle Ford transaction adds a high-quality oil asset with substantial reserve and oil production growth opportunities."
The company added there is a lot of interest in their Gulf of Mexico offshore assets, which they have offered for sale.
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