Dougherty & Co Downgrades Brigham Exploration (BEXP) to Neutral; Could Be The Onset Of A Major Consolidation Phase
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Price: $36.48 --0%
Rating Summary:
5 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dougherty & Co downgraded Brigham Exploration (NASDAQ: BEXP) from Buy to Neutral, price target lowered from $40 to $36.50.
Dougherty analyst says, "Statoil (NYSE: STO) announced the acquisition of Brigham Exploration for $4.4 billion in cash, or $36.50 per share. The acquisition price of $36.50 represents a 20% premium to the 10/14 closing price of $30.36 per share and a 36% premium to the 30-day average trading price. Statoil’s acquisition includes the assumption of $600 million in senior notes, reflecting an enterprise value of $4.7 billion. As such, the transaction prices Brigham’s 375,000 net mineral acres at ~$12,500 per acre and ~$70.50 per barrel of reserves."
"We believe this could be the onset of a major consolidation phase in the Williston Basin, with Oasis Petroleum (NYSE: OAS)(BUY: $38), Whiting Petroleum (NYSE: WLL)(NotRated), and Kodiak Oil and Gas (NYSE: KOG)(NR) potential acquisition candidates."
For more ratings news on Brigham Exploration click here and for the rating history of Brigham Exploration click here.
Shares of Brigham Exploration closed at $36.75 yesterday.
Dougherty analyst says, "Statoil (NYSE: STO) announced the acquisition of Brigham Exploration for $4.4 billion in cash, or $36.50 per share. The acquisition price of $36.50 represents a 20% premium to the 10/14 closing price of $30.36 per share and a 36% premium to the 30-day average trading price. Statoil’s acquisition includes the assumption of $600 million in senior notes, reflecting an enterprise value of $4.7 billion. As such, the transaction prices Brigham’s 375,000 net mineral acres at ~$12,500 per acre and ~$70.50 per barrel of reserves."
"We believe this could be the onset of a major consolidation phase in the Williston Basin, with Oasis Petroleum (NYSE: OAS)(BUY: $38), Whiting Petroleum (NYSE: WLL)(NotRated), and Kodiak Oil and Gas (NYSE: KOG)(NR) potential acquisition candidates."
For more ratings news on Brigham Exploration click here and for the rating history of Brigham Exploration click here.
Shares of Brigham Exploration closed at $36.75 yesterday.
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