UPDATE: KeyBanc Downgrades Plains Exploration & Production to Hold Following Takeout

KeyBanc reduced its rating on Plains Exploration & Production

from Buy to Hold and suspended its previous $52 price target. KeyBanc commented, "We are downgrading Plains Exploration & Production Company (PXP-NYSE) to HOLD from BUY based on valuation given the recently announced acquisition by Freeport-McMoran Copper & Gold (FCX) in which PXP shareholders will receive half of the transaction consideration in cash ($25/share) and the remainder in FCX common stock, which will ultimately determine the closing value of the deal (0.6531 FCX shares per PXP share). Based on yesterday's closing price of $44.50/share, we view the deal metrics positively at $91,066/flowing BOED of production, $29.11/BOE of proved reserves and 4.35x 2013E EBITDAX." Plains Exploration & Production closed at $44.50 on Wednesday.