KeyBanc has initiated coverage on SandRidge Energy (NYSE:SD), starting them off with a "Hold."
Valuation of the Hold on Sandridge was one of the major factors, as they've gained over 27 percent in the last month.
"Over the course of about nine months, SandRidge Energy aggressively and successfully transitioned from a natural gas focused company to an oil focused company with considerable natural gas upside potential ... With 75% of 2H10 and over 95% of 2011 capital spending expected to be dedicated toward SD's new oil focused assets, we believe execution in these new assets will be key. While we are impressed by management's speed and success in repositioning the Company, we are taking a bit more of a wait and see approach as the Company executes on its new oil properties. Furthermore, SD's share price is up 27.7% over the last month, vs. peers up 6.8% and the S&P 500 up 2.9%," KeyBanc said.
SandRidge closed down at $5.70 Wednesday, dropping $0.17, or 2.90 percent.
Showing posts with label KeyBanc. Show all posts
Showing posts with label KeyBanc. Show all posts
Thursday, October 7, 2010
KeyBanc Launches Coverage on Pioneer (NYSE:PXD) with "Buy" Rating
Pioneer Natural Resources (NYSE:PXD) has had coverage initiated on them by KeyBanc, and there were started off with a "Buy," citing Spraberry and Eagle Ford.
"Manufacturing strong returns in the Spraberry...more to come. PXD has significant running room in the Spraberry with a huge inventory of more than 20,000 drilling locations in the play (- 800,000 net acres)...Eagle Ford operations just getting started...expecting a strong ramp. With a joint venture executed in mid-2010, we expect a significant increase in the drilling and completion of wells headed into 2011 and beyond ... Visible double-digit production growth, while spending within cash flow over the next three years (at least)," said KeyBanc.
Pioneer ended Wednesday's trading session at $69.54, adding $0.21, or 0.30 percent. KeyBanc started them off with a price target of $90, affording them a large amount of potential growth.
"Manufacturing strong returns in the Spraberry...more to come. PXD has significant running room in the Spraberry with a huge inventory of more than 20,000 drilling locations in the play (- 800,000 net acres)...Eagle Ford operations just getting started...expecting a strong ramp. With a joint venture executed in mid-2010, we expect a significant increase in the drilling and completion of wells headed into 2011 and beyond ... Visible double-digit production growth, while spending within cash flow over the next three years (at least)," said KeyBanc.
Pioneer ended Wednesday's trading session at $69.54, adding $0.21, or 0.30 percent. KeyBanc started them off with a price target of $90, affording them a large amount of potential growth.
PDC Energy (NASDAQ:PETD) Getting Coverage from KeyBanc, Starts with "Buy"
KeyBanc announced they're initiating coverage on PDC Energy (NASDAQ:PETD), and they started them off with a "Buy."
"Got to love an attractively valued stock with catalysts. PETD's valuation is attractive on several metrics, including EV/DCF and EV/EBITDA, as well as implied reserve value in the ground. On average, across these three metrics, PETD trades at a 39.5% discount to peers' valuation."
PDC Energy closed Wednesday at $29.75, gaining $1.07, or 3.73 percent. KeyBanc started them off with a price target of $40.
The company has a market cap of about 573 million.
"Got to love an attractively valued stock with catalysts. PETD's valuation is attractive on several metrics, including EV/DCF and EV/EBITDA, as well as implied reserve value in the ground. On average, across these three metrics, PETD trades at a 39.5% discount to peers' valuation."
PDC Energy closed Wednesday at $29.75, gaining $1.07, or 3.73 percent. KeyBanc started them off with a price target of $40.
The company has a market cap of about 573 million.
Tuesday, September 7, 2010
PostRock Energy (Nasdaq:PSTR) Rated "Hold" by KeyBanc
Saying the financial uncertainty concerning PostRock Energy (Nasdaq:PSTR) has been significantly reduced, KeyBanc is not rating the company as "Hold" from "Not Rated."
A KeyBanc analyst said, "Last week, PostRock Energy announced that White Deer Energy, a recently formed private equity firm, has agreed to invest $60.0 million of equity in the Company. In conjunction with the equity investment, PSTR's credit agreements will be restructured. Moreover, White Deer Energy will provide PSTR with an additional $30 million to invest on mutually acceptable terms to fund growth...With the announced financing, debt restructuring and planned asset sales, we believe the financial uncertainty has been reduced substantially; thus, we are moving our rating from Not Rated to Hold."
PostRock will use the capital to pay down its debt and finance future growth.
Last week, PostRock president and CEO, David C. Lawler, said, "The transaction represents the conclusion of a two-year effort to restructure and recapitalize the company. During this challenging period, we reduced operating costs, kept our capital projects on budget and maintained a strong production base."
PostRock Energy focuses on the exploration, acquisition, development, production and transportation of natural gas and oil mostly in the Cherokee Basin of Kansas and Oklahoma.
A KeyBanc analyst said, "Last week, PostRock Energy announced that White Deer Energy, a recently formed private equity firm, has agreed to invest $60.0 million of equity in the Company. In conjunction with the equity investment, PSTR's credit agreements will be restructured. Moreover, White Deer Energy will provide PSTR with an additional $30 million to invest on mutually acceptable terms to fund growth...With the announced financing, debt restructuring and planned asset sales, we believe the financial uncertainty has been reduced substantially; thus, we are moving our rating from Not Rated to Hold."
PostRock will use the capital to pay down its debt and finance future growth.
Last week, PostRock president and CEO, David C. Lawler, said, "The transaction represents the conclusion of a two-year effort to restructure and recapitalize the company. During this challenging period, we reduced operating costs, kept our capital projects on budget and maintained a strong production base."
PostRock Energy focuses on the exploration, acquisition, development, production and transportation of natural gas and oil mostly in the Cherokee Basin of Kansas and Oklahoma.
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