KLR Group Raises Price Target on RSP Permian (RSPP) Following Delaware Acquisition
- Wall Street dips on Trump protectionism, Qualcomm drag
- Yahoo! (YHOO) Tops Q4 EPS by 4c; Sees Verizon Deal Closing in Q2, Not Q1
- Aetna's (AET) Humana (HUM) Takeover Blocked by Judge as Anticompetative
- Trump signs order withdrawing U.S. from Trans-Pacific trade deal
- After-Hours Stock Movers 1/23: (REXX) (MRCY) (SYNC) Higher; (FSM) (OCUL) (CASC) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
KLR Group reiterated a Buy rating on RSP Permian, Inc. (NYSE: RSPP), and raised the price target to $55.00 (from $52.00), following the company's Delaware acquisition. The transaction adds ~41k net acres in the Delaware Basin to RSPP’s portfolio and ~15 MBoepd (~69% oil) of production. To fund the cash portion of the acquisition, RSPP priced ~25.3 mm shares at $39.75 for total gross proceeds of ~$1.01 bn.
Analyst Gail Nicholson commented, "We are increasing our target price $3 to $55 per share following the transformative Delaware Basin acquisition, the associated acceleration of our '17 forward rig tempo, and an ~10% improvement in capital productivity (legacy assets continue to outperform, 3Q/16 volumes ~4% better than our expectation) partly offset by the equity issuance. RSPP is acquiring Silver Hill Energy Partners for ~$2.4 bn consisting of ~$1.25 bn in cash and ~31 mm shares of RSP common stock. To fund the cash portion of the acquisition, RSPP priced ~25.3 mm shares (includes over allotment) at $39.75 for total gross proceeds of ~$1.01 bn. Including the shares issued to Silver Hill, RSPP shares outstanding increased ~55%."
Shares of RSP Permian, Inc. closed at $42.11 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- General Electric (GE) PT Lowered to $35 at UBS Following 4Q Report
- Perrigo Co. (PRGO): Cutting Estimates After Management Meeting - Jefferies
- UPDATE: Instinet Downgrades Qualcomm (QCOM) to Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!