logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


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

By  +Follow January 10, 2014 8:59AM
Share:
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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Signup for our daily newsletter and get our best articles emailed right to you!

				
				
By  +Follow January 10, 2014 8:59AM
Share:

Comments

 

blog comments powered by Disqus

 Today's Must Reads

5 Small-Cap Energy with Hedges to Survive Oil's Bear Market


DraftKings and FanDuel: The New Face of Legalized Online Sports Betting

Is the Market Paying the Toll of Tech?

What Will Uber Look Like in the Future?


How Dodd-Frank Divides Political Parties Prior to 2016 Election

 

Apple (AAPL) is expected to announce its latest quarterly earnings next week. As the most valuable company by mark... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

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

Login or Register

LOG IN