UPDATE: Imperial Capital Re-Initiates Bonanza Creek Energy at In-Line Ahead of Catalysts, Earnings
Imperial Capital re-initiated coverage on Bonanza Creek Energy (NYSE: BCEI) with an In-Line rating and a $33 price target.
Imperial Capital commented, "With the Niobrara “B” Bench in full development mode on 80-acre spacing, this year BCEI will continue to test the additional resource potential of the Niobrara “C” and Cordell formation (four wells each) as well as extended reach laterals (2) and two 40-acre spaced pilot programs on the “B” Bench. With the bulk of this activity expected to commence in 2Q13, we look for a catalyst-driven 2H13. … Near-term catalysts include the release of 2012 reserve data in February and 4Q12 results in March. The market also awaits results from the company's first Niobrara “C” bench well in addition to the first extended reach lateral in the Niobrara “B” bench."
Bonanza Creek Energy closed at $32.24 on Monday.
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