Skip to main content

Market Overview

Stifel Projects 150% Upside For Lilis Energy In Bullish Initiation

Stifel Projects 150% Upside For Lilis Energy In Bullish Initiation

Lilis Energy (NYSE: LLEX)'s recent transactions suggest the stock holds substantial upside, according to Stifel. 

The Analyst

Stifel analyst Michael Scialla initiated coverage of Lilis Energy with a Buy rating and $12 price target.

The Thesis

Lilis Energy retains 19,400 net acres in the Delaware Basin, where recent transactions have valued the property at nearly $27,000 per acre, Scialla said in the initiation note. (See the analyst's track record here.) 

Lilis has completed 17 wells. "Based on 90-day and six-month averages, the company's Wolfcamp wells are performing near the average of offset operators, including RSP Permian, Inc. (NYSE: RSPP), albeit with a slightly higher gas-oil ratio," Scialla said. 

Lilis is expected to complete wells in new zones and improve efficiency with higher volumes, the analyst said. 

Lilis has struck long-term agreements to sell oil, gas and natural gas liquids at Midland, Waha hub and Mont Belvieu prices, according to Stifel. 

“While Lilis is currently trucking oil to a terminal at Wink, its midstream partner is expected to complete a gathering line to the terminal by [the first quarter of 2019]. The company also has sufficient access to water and disposal capacity for its 2018 plan and beyond.”

Price Action

Lilis shares were 1.92 percent higher at $4.78 at the close Wednesday. 

Related Links:

Benzinga's Top Upgrades, Downgrades For August 1, 2018 

Cabot Oil & Gas Offers Downside Protection, Susquehanna Says In Upgrade

Latest Ratings for LLEX

Jan 2020Stifel NicolausDowngradesBuyHold
Jan 2020Capital OneDowngradesEqual-WeightUnderweight
Oct 2019Seaport GlobalDowngradesBuyNeutral

View More Analyst Ratings for LLEX
View the Latest Analyst Ratings


Related Articles (LLEX)

View Comments and Join the Discussion!

Posted-In: Michael Scialla StifelAnalyst Color Price Target Initiation Analyst Ratings Media

Latest Ratings

ETCredit SuisseMaintains13.0
IFRXCredit SuisseMaintains2.8
METCredit SuisseMaintains68.0
FLXNCredit SuisseMaintains14.0
ENPHCapital OneInitiates Coverage On175.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at