KeyBanc Upgrades Delta Petroleum (DPTR) to Hold
DPTR Hot Sheet
Rating Summary:0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
KeyBanc upgrades Delta Petroleum (NASDAQ: DPTR) from Underweight to Hold.
KeyBanc analyst says, "We are raising our rating on Delta Petroleum to HOLD following the recently completed follow-on offering. As a reminder, on May 13, 2009, DPTR priced 172.5 million shares of common stock (including a 22.5 million share over allotment) at $1.50 per share. Net proceeds from the offering (including the over allotment) approximated nearly $247.3 million. DPTR expects to use at least $70.0 million to reduce amounts outstanding on its credit facility and the balance is expected to be used for working capital including paying down outstanding accounts payables. Our increased rating is based on: 1) our belief that the risk of default on its borrowing base has been eliminated with the proceeds raised from the recent equity offering; and 2) the current share price is basically in line with our RNAV estimate of $1.70 per share. Finally, we believe a HOLD rating is appropriate, as the current stock price, in our judgment, presents a perpetual call on the Company's large inventory of low-risk locations in the Piceance Basin, as well as other assets."
Delta Petroleum Corporation (Delta) is an independent oil and gas company engaged primarily in the exploration for, and the acquisition, development, production, and sale of, natural gas and crude oil.
KeyBanc analyst says, "We are raising our rating on Delta Petroleum to HOLD following the recently completed follow-on offering. As a reminder, on May 13, 2009, DPTR priced 172.5 million shares of common stock (including a 22.5 million share over allotment) at $1.50 per share. Net proceeds from the offering (including the over allotment) approximated nearly $247.3 million. DPTR expects to use at least $70.0 million to reduce amounts outstanding on its credit facility and the balance is expected to be used for working capital including paying down outstanding accounts payables. Our increased rating is based on: 1) our belief that the risk of default on its borrowing base has been eliminated with the proceeds raised from the recent equity offering; and 2) the current share price is basically in line with our RNAV estimate of $1.70 per share. Finally, we believe a HOLD rating is appropriate, as the current stock price, in our judgment, presents a perpetual call on the Company's large inventory of low-risk locations in the Piceance Basin, as well as other assets."
Delta Petroleum Corporation (Delta) is an independent oil and gas company engaged primarily in the exploration for, and the acquisition, development, production, and sale of, natural gas and crude oil.
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