Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?


EPL Oil & Gas (EPL) Jumps on Upgrade to "Buy"

By  +Follow January 10, 2014 8:59AM
Tickers Mentioned:

The $1 billion-dollar independent oil & gas exploration/production firm Energy Partners Ltd. (EPL) was trading nearly 7 percent higher on Friday following an upgrade from Canaccord Genuity from “hold” to “buy.”

The gains for Energy Partner’s came early and persisted throughout the day’s trading, despite the fact that another ratings firm, Sasquehanna, initiated coverage on the stock at “negative” at the same time. EPL is a Houston, TX-based company that does the bulk of its work in state and federal waters in the Gulf of Mexico, and is coming off a strong 2013, on a gain of nearly 25 percent for the full year.

In the new year, however, shares have struggled slightly, off about 6 percent, including Friday’s gains. Canaccord’s decision to upgrade EPL was based on valuation, as the company is trading at just over 9 times earnings, significantly behind the industry average of around five times greater than that.

Furthermore, the ratings firm gave Energy Partners’ stock a price target of $37, a significant premium on the company’s current share price of $28. Though an independent explorer/driller, the company is not one of those whose revenues and profits are tied to the onshore “shale boom” of recent years.

Instead, Canaccord believes that the company’s offshore assets are of high-quality. EPL is currently sitting on at least 77.5 million barrels of oil equivalent, and owns interests in at least 37 different producing fields in the Gulf of Mexico shelf.

If nothing else, today’s upgrade is an indication that the “shale boom,” for all of its magnitude and consequence, is still only one component among several that currently make up the US “energy revolution,” and that more traditional wells, as well as other types of unconventional sources, will continue to play a significant role going forward.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for EPL
Daily Contracts
29 Aug 14 12:00:24
Real-Time feed of company contracts, original agreements and executive updates from Energy Partners, Ltd. $EPL http://t.co/nE3VNW5JxW
Market Monitor
29 Aug 14 10:17:25
$EPL: McColl aims to expand workforce at stricken Ferguson Shipbuilders http://t.co/EDBPYZTtsy http://t.co/FkmRtQhHM2
Eden Zepeda
29 Aug 14 09:20:15
Energy XXI Completes Acqu $EPL http://t.co/G32zwxzZls
Wall Street News
29 Aug 14 09:17:21
$EPL: EPL Oil & Gas (EPL): Strong Industry, Solid Earnings Estimate Revisions http://t.co/5WOBW30GMI http://t.co/TZtyClLlu4
Suzi Scales
29 Aug 14 08:44:11
$EPL Energy XXI Complet http://t.co/w4PKEpxNWf
28 Aug 14 15:55:00
$VIIC ran up 720% Today in an explosive move! Our new picks are coming soon: http://t.co/EdxLh9u5Nx $VVUS $EPL $FNSR
Bodhi Morley
28 Aug 14 05:58:52
$EPL Energy XXI Completes Acq http://t.co/EhJIfOq0fn
Bunny Lindquist
27 Aug 14 09:47:43
$EPL Energy XXI Completes http://t.co/6qam7BITF8
26 Aug 14 23:14:04
Hottest in Twitter Related to $EPL on 08/27/2014 http://t.co/Q88dNYclie
Bulls vs Bears
26 Aug 14 20:17:20
$EPL: Mafia Dons: is the Camorra in control of the Granite City? http://t.co/3yw0nCwJ4Y http://t.co/huidS8E1Qm
By  +Follow January 10, 2014 8:59AM



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.