UPDATE: BMO Capital Markets Initiates Plains Exploration & Production at Outperform on Deepwater Acquisition

BMO Capital Markets initiated coverage on Plains Exploration & Production

with an Outperform rating and a $45 price target. BMO Capital Markets noted, "Plains's +$6 billion deepwater Gulf of Mexico acquisition transforms the story to one with an increased focus on deepwater redevelopment and exploration, rather than one in which a legacy, free cash flowing California asset funds oil production growth in an Eagle Ford sweet spot. Demonstrating to the Street the value of its newly acquired deepwater assets will take time, but we think investors' initial skepticism of the deal creates an attractive entry point for the shares." Plains Exploration & Production closed at $36.97 on Thursday.