UPDATE: ISI Group Raises Target on Plains Exploration & Production to $52
ISI Group raises its price target on Buy-rated Plains Exploration & Production (NYSE: PXP) on California oil strength.
ISI Group says, "California is an ‘Island' from a crude supply standpoint, with no pipelines entering the state from the lower 48. Continued price strength benefits CA producers. ...Plains Exploration (PXP) is a particularly strong beneficiary having reset refinery contracts on 70% of its CA oil production from an ~8% discount to WTI to local reference prices. PXP's CA output will pick up ~$15 per Bbl versus the old pricing structure, equivalent to $225MM ($1.75 per share pre-tax), all other things equal."
PXP closed at $45.04 a share yesterday.
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