Global Hunter Securities Downgrades Plains Exploration (PXP) to Accumulate; Going, Going, Gone
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Price: $48.90 --0%
Rating Summary:
7 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Global Hunter Securities downgraded Plains Exploration (NYSE: PXP) from Buy to Accumulate with a price target of $63.00.
Analyst, Curtis Trimble, said, "Despite the substantial estimated upside to our $63 price target for PXP shares, we are downgrading the stock given the inherent risk and uncertainty with the pending acquisition. In the near term, we see a few positive catalysts on the horizon for PXP; however, several significant near- to medium-term questions remain to be answered concerning yesterday's announced acquisition. The terms include about 66.7 Mboepd of deepwater Gulf of Mexico (GoM) production, consisting of 87% oil, from BP (NYSE: BP) and Shell (NYSE: RDS-A) for about $6.1B. PXP will acquire portions of five fields, Holstein, Horn Mountain, Marlin, Diana-Hoover, and Ram Powell from BP for $5.5B, as well as the balance of Holstein working interest from RDS for $560MM. Management anticipates the transaction to close by year-end 2012."
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 $36.09 yesterday.
Analyst, Curtis Trimble, said, "Despite the substantial estimated upside to our $63 price target for PXP shares, we are downgrading the stock given the inherent risk and uncertainty with the pending acquisition. In the near term, we see a few positive catalysts on the horizon for PXP; however, several significant near- to medium-term questions remain to be answered concerning yesterday's announced acquisition. The terms include about 66.7 Mboepd of deepwater Gulf of Mexico (GoM) production, consisting of 87% oil, from BP (NYSE: BP) and Shell (NYSE: RDS-A) for about $6.1B. PXP will acquire portions of five fields, Holstein, Horn Mountain, Marlin, Diana-Hoover, and Ram Powell from BP for $5.5B, as well as the balance of Holstein working interest from RDS for $560MM. Management anticipates the transaction to close by year-end 2012."
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 $36.09 yesterday.
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