KLR Group Starts Eclipse Resources (ECR) at Buy

November 21, 2016 7:09 AM EST
Get Alerts ECR Hot Sheet
Price: $2.44 -1.21%

Rating Summary:
    8 Buy, 11 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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KLR Group initiates coverage on Eclipse Resources (NYSE: ECR) with a Buy rating and a price target of $3.75.

Analyst Daniel Prather commented, "We are initiating on ECR with a Buy rating and $3.75 per share target price. Eclipse has ~101,000 net acres prospective in the Ohio Utica comprising ~48,500 dry gas acres, ~33,000 condensate acres and ~19,500 rich gas acres. The company’s acreage is primarily in northeast Noble, southwest Monroe, southwest Belmont, southeastern Guernsey and central Harrison Counties.

Next year, the company plans to conduct a one-rig program and drill 20-24 net wells (~13,000’ laterals) primarily in the dry gas window. Eclipse is considering adding a second rig by mid-year. In early ’17, the company plans to drill two Marcellus pilots (~9,000’ laterals) in southeastern Monroe County.

Our 4Q/16 production expectation of ~252 Mmcfepd is ~1% above guidance (245-250 Mmcfepd). Our ’17 production growth expectation approximates company guidance (30%+).

Our economic model contemplates the company increases Utica activity from a one-rig program in late ’16 to a two-rig program by mid-’17."

For an analyst ratings summary and ratings history on Eclipse Resources click here. For more ratings news on Eclipse Resources click here.

Shares of Eclipse Resources closed at $2.93 yesterday.

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