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UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Bonanza Creek Energy

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MLV & Co Believes Catalyst Program Appears Promising For Bonanza Creek Energy
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In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Bonanza Creek Energy (NYSE: BCEI), and raised its price target from $28.00 to $32.00.

BMO Capital Markets noted, “Bonanza Creek announced an aggressive 2013 capital budget that we think reflects the high return nature of its Wattenberg and Arkansas assets and solid balance sheet to accelerate this value realization. Capital spending of $394 mn was above our $351 mn and consensus' $360 mn, with the delta to our estimate primarily due to increased horizontal Wattenberg drilling. In 2013, Bonanza plans to ramp horizontal rig count to four by early 2Q13 and drill 72 gross (64.5 net) operated wells, a seaming improvement in drill times. This level of activity is above the 46 gross horizontals we had modeled (we also assumed some verticals of which none are budgeted), leading to 2013 production guidance of 14.5-16MBoe/d being above our and median Bloomberg consensus estimates of 14.85MBoe/d.”

Bonanza Creek Energy closed on Thursday at $28.41.

Posted-In: BMO Capital MarketsAnalyst Color Price Target Analyst Ratings

 

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