Goldman Sachs Reiterates Buy, Upgrades EPS On Plains Exploration & Production Company (PXP)

Goldman Sachs reiterated its Buy rating on Plains Exploration & Production Company PXP. In a research report published today, Goldman also increased its earnings per share estimate on Plains Exploration, after the company reported better than expected Q1 results. In the report, Goldman states, "PXP reported 1Q2011 adj. EPS of $0.37 vs. our/consensus $0.34/ $0.34. Production was 88.9 MBOE/d in line with our est. Op. cash flow was $243 mn vs. our $216 mn, higher on lower than expected cash taxes and higher EBITDA. The company maintained 2011 production and capex guidance (1.2 bn) but highlighted $100/bbl case of $1.5 bn capex to accelerate Eagle Ford Shale activity. We update 2011-13E EPS estimates to $2.10/$3.20/ $2.64 from $2.15/$3.19/$2.68 to reflect changes to production/costs/prices." In yesterday's trading, Plains Exploration lost 0.11% of its value to close the day at $35.50.