Gabelli Upgrades Black Hills Corp (BKH) to Buy; Selling Bakken as Three Folks Assets for $243M

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Gabelli upgraded Black Hills Corp (NYSE: BKH) from Hold to Buy with a price target of $46.00.

Gabelli analyst said, "Upgrading to Buy after BKH agreed to sell its 85% interest in its Bakken and Three Forks shale assets (73 wells and 28,000 net lease acres) in the Williston Basin for $243 million to QEP Resources (NYSE: QEP). The sale is expected to close on 9/30/2012 and net cash proceeds of $230-240mm with a considerable taxable gain offset by NOL’s...We consider the agreement to be a significant positive given expected $0.10-0.15 EPS accretion, improved balance sheet, reduced equity needs and the realization of significant unrecognized value."

For an analyst ratings summary and ratings history on Black Hills Corp click here. For more ratings news on Black Hills Corp click here.

Shares of Black Hills Corp closed at $31.01 yesterday, with a 52 week range of $28.63-$35.82.

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