UPDATE: Cowen Securities Raises PT on EPL Oil & Gas on Free Cash Flow

In a report published on Friday, Cowen Securities analyst Nicholas Pope raised the price target on EPL Oil & Gas

from $30.00 to $40.00 and maintained a Buy rating. In the report, Nicholas Pope noted, "EPL's analyst day focused on extracting additional reserves and production out of the acquisitions it has made (and expects to make in the future). An acquire and-exploit strategy remains a strong add to shareholder value for strong operators, while capital remains relatively cheap and commodity prices stable. As a result of last year's Hilcorp acquisition, EPL should generate over $161MM of free cash flow in 2013 ($467MM of discretionary flow vs. CAPEX of $300MM - 12% free cash flow yield). We are modeling $99MM of free cash flow in 2014, but organic growth should moderate the further we get from the company's most recent acquisition. Over, 2013-2014, EPL should generate 18% of its market cap in free cash flow and is using it to pay down debt." EPL Oil & Gas currently trades at $33.26.