Wunderlich Raises Price Target On Bonanza Creek Energy

Irene Haas of Wunderlich Securities on Tuesday maintained a Buy rating on Bonanza Creek Energy Inc BCEI and raised its price target to $38 from a $34 following the company's operational update for 2014 and capital expenditure guidance for 2015.

Haas notes that the company's fourth quarter 2014 production will come in approximately 2,000 boepd lighter than expected, as production was impacted by mid-stream downtime (750 boepd), completion delays (600 boepd) and cold weather (650 boepd).

Meanwhile, Bonanza Creek Energy said it plans to decrease its 2015 capex spending to $420 million, a 36 percent to 38 percent decrease from 2014 levels while growing production by 15 percent. In the Wattenberg Gas Field, the company will use 2.5 rigs and plans to drill 67 net wells and complete 71 net wells, accounting for $380 million I spending while $40 million will be spent in Arkansas to hold production flat.

The analyst now estimates the company's 2015 volume will total 27,043 boped (2-stream), down from prior estimates of 30,603 boepd.