Wunderlich Securities Sees Purchase & Sale Agreement as Transformational Occurrence for Harvest Natural Resources

In a report published Monday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating and $8.00 price target on

. In the report, Wunderlich Securities noted, “Harvest Natural Resources (HNR) last week filed the Purchase and Sale agreement for its divestment of the entirety of its Venezuelan asset base, which includes the First Closing that adds $125 million gross ($122 million net) to the balance sheet. This is a transformational occurrence for Harvest as it clears up all near-term liquidity concerns, allows the debt to be fully repaid and begins the process of exiting Venezuela and moving on to other opportunities. Additionally, we believe that the First Closing signifies great progress toward getting the Second Closing (and the $275 million gross to Harvest) done during 1H14 which would further increase the cash position, add solid value of about $5/share after taxes and fees, and gives Harvest optionality on its other assets.” Harvest Natural Resources closed on Friday at $4.51.