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UPDATE: Global Hunter Securities Downgrades Plains Exploration & Production to Neutral Following Deal

Related PXP
Freeport-McMoRan Copper & Gold Completes Oil & Gas Transactions, Creates Premier U.S. Based Natural Resource Company
UPDATE: Freeport-McMoRan Copper & Gold Inc. Announces Intention to Declare $1.00 per Share Supplemental Dividend on Closing of Plains Exploration & Production Company Acquisition and Reiterates Capital Allocation Plan for Oil & Gas Business

Global Hunter Securities reduced its rating on Plains Exploration & Production (NYSE: PXP) from Accumulate to Neutral and reduced its price target $58 to $50

Global Hunter Securities noted, "In one of the more interesting series of developments in US oil and gas in some time, global mining company Freeport-McMoRan announced its intentions to buy not only Plains Exploration, but also McMoRan Exploration. Including assumption of the pro forma debt Plains incurred in order to close its recent acquisition of deepwater Gulf of Mexico assets from British Petroleum, Exxon and Shell, these deals are valued at about $20B. … We are downgrading shares of PXP to a Neutral rating from Accumulate and lowering our price target to $50 from $58 to reflect the deal valuation."

Plains Exploration & Production closed at $44.50 on Wednesday.

Posted-In: Global Hunter SecuritiesAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

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