Stifel Raises Price Target as PDC Energy (PDCE) Improves Well Costs; Reiterates Buy

Stifel reiterated a Buy rating on PDC Energy (NASDAQ: PDCE), and raised the price target to $70.00 (from $65.00), based on lower well costs and 2017 guidance. PDCE increased its 3-stream SRL and MRL Middle Core type curve 11% and 14%. Better completion techniques are yielding higher production rates of 10-20% and 5-10%, respectively.

Analyst Michael Scialla commented, "We are raising our price target to $70 from $65 based primarily on lower well costs and 2017 guidance. At today's Analyst Day presentation, management indicated that recent SRL Niobrara completed well costs averaged $2.5mn, 9% below our prior forecast of $2.75mn. The change causes us to raise our risked NAV estimate 10% to $70/share."

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

Shares of PDC Energy closed at $59.30 yesterday.

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