FBR Capital Maintains an 'Outperform' on Petrohawk (HK); Returns Trending Higher
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Price: $0.16 --0%
Rating Summary:
2 Buy, 14 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 14 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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FBR Capital maintains an 'Outperform' on Petrohawk (NYSE: HK), PT $32.
FBR analyst says, "We believe that the positive impact of maturation of the Eagle Ford portfolio on project-level IRRs is not being appreciated by the marketplace. Because of a planned increase in 2011 capital allocation toward Eagle Ford and HiWAY frac technology, we calculate pretax project-level IRR of 75% for total 2011 drilling capital of $2 billion. We believe that the addition of a third successful leg to the growth story (Permian) has material positive implications on cost of capital and aggregate returns. The flexibility in capital allocation and the upward pressure on rate of return becomes too meaningful to ignore and should help drive continued revaluation. We believe that given the strength of the underlying asset base, the balance sheet remains in reasonable shape and is not a concern despite continued near/intermediate term cash flow outspend."
For more ratings news on Petrohawk click here and for the rating history of Petrohawk click here.
Shares of Petrohawk closed at $24.14 yesterday.
FBR analyst says, "We believe that the positive impact of maturation of the Eagle Ford portfolio on project-level IRRs is not being appreciated by the marketplace. Because of a planned increase in 2011 capital allocation toward Eagle Ford and HiWAY frac technology, we calculate pretax project-level IRR of 75% for total 2011 drilling capital of $2 billion. We believe that the addition of a third successful leg to the growth story (Permian) has material positive implications on cost of capital and aggregate returns. The flexibility in capital allocation and the upward pressure on rate of return becomes too meaningful to ignore and should help drive continued revaluation. We believe that given the strength of the underlying asset base, the balance sheet remains in reasonable shape and is not a concern despite continued near/intermediate term cash flow outspend."
For more ratings news on Petrohawk click here and for the rating history of Petrohawk click here.
Shares of Petrohawk closed at $24.14 yesterday.
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