KeyBanc Starts Plains Exploration (PXP) at Buy; Offering a Unique Blend

KeyBanc initiates coverage on Plains Exploration (NYSE: PXP) with a Buy. PT $45.00.

KeyBanc analyst says, "Plains is a U.S.-focused E&P company offering a unique blend of a conventional oily production based in California, unconventional liquids growth assets in the Granite Wash and Eagle Ford shale, and attractive deepwater prospects in the U.S. Gulf of Mexico. Since the offshore Macondo well disaster in 2009, the Company has proactively derisked its asset profile by focusing more firmly onshore and monetizing over $1.2 billion in assets in the GOM, using the proceeds to build up an attractive arsenal of onshore potential in leading U.S. liquids plays. PXP is getting leaner and more focused on oily growth by leverage core acreage in the Eagle Ford shale and its stable, high-return position in California. With shares currently trading at 4.5x 2012E EBITDAX, 94% of our "hard" NAV, and a -44% discount to our RNAV, we believe that immense value is being neglected that should come through further offshore monetization and successful exploitation of its attractive Eagle Ford position."

For an analyst ratings summary and ratings history on Plains Exploration click here. For more ratings news on Plains Exploration click here.

Shares of Plains Exploration closed at $34.81 yesterday.

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