Sterne Agee CRT Remains Bullish Following Rice Energy (RICE) Q1

Sterne Agee CRT reiterates it's Buy rating on Rice Energy (NYSE: RICE ), with a price target of $30.00, following Q1 earnings. With Utica Well's performance exceeding expectations, Sterne Agee CRT sees financial engineering catalysts in the form of a drop-down of the Ohio gas gathering system and the residual read-through to the value of GP units in RMP held by Rice Energy as the largest catalysts into 2016.

Sterne Agee CRT analyst, Tim Rezvan, commented on RICE, saying, "The biggest takeaway from 1Q earnings was how conservative the company continues to be about the prolific performance from its initial horizontal Utica Shale wells. Flow rates continue to be flat over 6-10 months. We look forward to getting an update on longer-term performance from early wells drilled at 500' spacing. Management expects them to decline quicker from interference from offset wells, given lower wellhead pressure than the company's first Utica test, but the outperformance to date (versus published type curves by the company) suggests potentially flatter production from all wells. This could driver 2015 production above current company guidance."

For an analyst ratings summary and ratings history on Rice Energy click here. For more ratings news on Rice Energy click here.

Shares of Rice Energy closed at $25.12 yesterday.

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