Global Hunter Maintains Buy on GeoResources (GEOI)

Global Hunter is out with its report today on GeoResources GEOI, maintaining Buy.

In a note to clients, Global Hunter writes, "GeoResources reported 4Q results below our estimates due to low price realization and higher G&A costs. The development program in the Bakken and Eagle Ford is set to ramp up with the addition of two operated rigs in each area by year-end. The impact to production
is notable in our 2012 estimates as we're expecting production to grow by more than 20% y/y. With 2012 cash flow at an estimated $4.25 per share, investors are currently paying 6.1x cash flow. We are therefore maintaining our Buy rating with a $32.00 price target which reflects 7.5x our 2012 CFPS estimate."

At the time of posting, shares of GEOI were trading at $25.29, down 25.18, down 3.08% from Thursday's close.