CapitalOne Likes the Bruin Deal, Enerplus Resources Fund (ERF) PT Raised to $8

January 27, 2021 6:43 AM EST
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Price: $7.19 +2.71%

Rating Summary:
    12 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 9 | New: 61
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CapitalOne analyst Brian Veilie raised the price target on Enerplus Resources Fund (NYSE: ERF) to $8.00 (from $7.00) while maintaining a Overweight rating after the company announced that it has entered into an agreement to acquire the Bruin assets for a total of $465MM (USD). The Bruin
assets include: 24 Mboe/d of current production (72% oil cut), 151,000 net acres in the Williston Basin, and an inventory of 111 net drilling locations.

The analyst stated "We maintain our Overweight rating and are increasing our target price by $1 to $8/share. We like the deal on valuation, additional core inventory, and the scale and synergies offered by the combination. CEO Ian Dundas had previously commented that Williston consolidation makes sense and that there were as many as a dozen PDP heavy assets in the basin that could be potential targets for ERF. Now there are 11".

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