Global Hunter Securities on Exploration & Production: Bakken Bits V: You Want Oil Growth? Here You Go
Tweet
Share
E-mailGet Alerts BEXP Hot Sheet
Price: $36.48 --0%
Rating Summary:
5 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
5 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Join SI Premium – FREE
Global Hunter Securities on Exploration & Production (E&P): Bakken Bits V: You Want Oil Growth? Here You Go.
Global analyst, Philip McPherson, says, "hat a difference a quarter makes. In our last Bakken Bits report we highlighted the burgeoning valuations pure-play exploration and production (E&P) companies were benefiting from, and the potential for a less frothy asset valuation going forward as fundamentals came into play. Well, over the course of the past three months we’ve seen the group trade sideways as commodity markets have cooled off, acreage valuation give way to fundamental metrics, and inclement weather conditions that brought activity to a crawl. From our universe of covered companies with Bakken exposure, stock performance over the past few months was a mixed bag with Brigham Exploration (Nasdaq: BEXP), Kodiak Oil & Gas (NYSE: KOG) and Northern Oil & Gas (NYSE: NOG) leading group performance, and Continental Resources (NYSE: CLR), Voyager Oil & Gas (NYSE: VOG), Triangle Petroleum (Nasdaq: TPLM) and Whiting Petroleum (NYSE: WLL) being the laggards. With much improved operating conditions in the basin, 2H11 is setting up to be a solid period as completion backlogs unwind and with curtailed production being returned to sales. Clearly demonstrating the Bakken comeback is the sequential production increase from June to July of 38,800 Bopd, marking only the second time in 10 years that production has ramped more than 10% in a single month. With a better sense of visibility in production/cash flow through year-end, we believe it is time to revisit a handful of the Bakken companies. With that said, we are raising our rating on Northern Oil & Gas and Whiting Petroleum from Accumulate to Buy, and reiterating our Buy rating on Brigham Exploration, Continental Resources, Kodiak Oil & Gas and Triangle Petroleum."
Global analyst, Philip McPherson, says, "hat a difference a quarter makes. In our last Bakken Bits report we highlighted the burgeoning valuations pure-play exploration and production (E&P) companies were benefiting from, and the potential for a less frothy asset valuation going forward as fundamentals came into play. Well, over the course of the past three months we’ve seen the group trade sideways as commodity markets have cooled off, acreage valuation give way to fundamental metrics, and inclement weather conditions that brought activity to a crawl. From our universe of covered companies with Bakken exposure, stock performance over the past few months was a mixed bag with Brigham Exploration (Nasdaq: BEXP), Kodiak Oil & Gas (NYSE: KOG) and Northern Oil & Gas (NYSE: NOG) leading group performance, and Continental Resources (NYSE: CLR), Voyager Oil & Gas (NYSE: VOG), Triangle Petroleum (Nasdaq: TPLM) and Whiting Petroleum (NYSE: WLL) being the laggards. With much improved operating conditions in the basin, 2H11 is setting up to be a solid period as completion backlogs unwind and with curtailed production being returned to sales. Clearly demonstrating the Bakken comeback is the sequential production increase from June to July of 38,800 Bopd, marking only the second time in 10 years that production has ramped more than 10% in a single month. With a better sense of visibility in production/cash flow through year-end, we believe it is time to revisit a handful of the Bakken companies. With that said, we are raising our rating on Northern Oil & Gas and Whiting Petroleum from Accumulate to Buy, and reiterating our Buy rating on Brigham Exploration, Continental Resources, Kodiak Oil & Gas and Triangle Petroleum."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Freedom Broker Upgrades John B. Sanfilippo & Son, Inc. (JBSS) to Buy
- NetEase.com (NTES) PT Raised to $168 at Goldman Sachs
- Okta, Inc (OKTA) PT Raised to $170 at Cantor Fitzgerald Ahead of Q2 Results
Create E-mail Alert Related Categories
Analyst Comments, UpgradesRelated Entities
Bakken FormationSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
