UPDATE: Jefferies Upgrades OGE Energy to Buy on Unconventional Play Option

Jefferies raised its rating on OGE Energy

from Hold to Buy and increased its price taget from $58.50 to $63.50. Jefferies said, "We are upgrading OGE Energy to Buy from Hold based on a free option for increased gathering and processing volumes in the recently unveiled SCOOP unconventional play. Earlier this week Continental Resources (CLR, $78.67, Buy) unveiled a new very liquids rich unconventional play called the South Central Oklahoma Oil Province (SCOOP). OGE's midstream business, Enogex, has significant acreage dedication in this region and we believe the company's gathering and processing volumes will increase significantly when this area is developed over the next several years." OGE Energy closed at $56.29 on Thursday.