4 Energy Stock Stories to Recharge Investor Interest
Magnum Hunter Resources Corporation (NYSE:MHR): Current price $4.50
The firm announced Tuesday that it will drill at least four Utica test wells in Ohio in 2013. Should the results be akin to those seen by offset operators in the area, further development on the leasehold position is planned for later in the year. Presently the firm, through its wholly-owned subsidiary Triad Hunter, is constructing its first Utica Pad in Washington County, Ohio, which is designed for potentially drilling four horizontal wells to the Utica formation.
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Goodrich Petroleum Corporation (NYSE:GDP): Current price $10.00
Goodrich shares were upgraded at BMO Capital Markets from Market Perform to Outperform and the price target was elevated from $10 to $11. The analyst commented in part that, “We believe the cleansing the stock has suffered presents a favorable risk/reward in which to gain exposure to exploration efforts targeting the Tuscaloosa Marine Shale, both company-operated and industry-driven. We see a firmer backstop on valuation today to make the recommendation investors step out on the risk curve.”
WPX Energy (NYSE:WPX): Closing price $14.98
The firm’s successful Niobrara shale find in western Colorado has the potential to significantly boost its natural gas reserves and daily production in the coming years. Output at the discovery well produced an initial peak of 16 million cubic feet per day at a flowing pressure of 7,300 pounds per square inch. Since then, the well has been choked back substantially so as to maximize the reservoir performance and to ensure maximum resource recovery. During the last 30 days, it produced at an average rate of 12 million cubic feet per day.
Pacific Drilling (NYSE:PACD): Closing price $10.28
The company said Tuesday that its wholly-owned subsidiary exercised an option to construct its eighth ultra-deepwater drillship along with Samsung Heavy Industries. The drillship will have a rated water depth of 12,000 feet, be equipped for a 40,000 feet drilling depth, have accommodations for 200 personnel and also be equipped to support dual gradient drilling. The total cost, subtracting capitalized interest, should be roughly $620 million, with delivery set for March 16, 2015.
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