TPH pounds the table on BEXP
Brigham Exploration - BEXP, with the increased wall of worry from investors on the Bakken weather related issues, as well as the macro backdrop impeding some investors to buy oil, BEXP has moved up to be our top "opportunistic" buy. BEXP is also the top name on our TPH Manifesto report which screens names focusing on capital efficiency (PV/I), return on capital, and margins. In the manifesto, these four metrics, we feel will highlight the companies that generate a differentiated return on investment regardless of leverage to oil or natural gas and have consistently been and should continue to be the best performing stocks. Therefore, we are "pounding the table" to buy BEXP.
Over the past month, investors have increasingly been bearish on the Bakken as they feel production numbers will be missed in the upcoming quarter, and that operators will play catch up for the remainder of the year. There was a field trip a few weeks back and the tour focused on the portion of the big state encompassing the Bakken that was the worst...the Parshall and Sanish areas. However, BEXP is working with some slight nuisance issues, but not seeing the slowdown in the West Williston as its counterparts are in the Pearsall and Sanish area. The Company stated they would make their quarter and feels they will blow out the next quarter. This will be addressed in a TPH sponsored conference call (details below) we will be hosting Monday, June 27th at 1pm cst. I encourage all to attend, and would encourage investors to step into the name today even though going long into a weekend with the macro backdrop may be an impediment for some. This is a long-term investable name as well as a tradeable name for the next 3-4 weeks. Our TPH conference call will address issues, also another E&P company will be hosting a small tour around the 14th of July and another sell side shop will be hosting one around that time as well. I think that these tours will probably focus on the areas that are working would be my guess and see a long trade in BEXP setting up well and could see it as a name that would be bought by those that are short the Bakken as a hedge to their trade. As investors and companies position themselves to defend their position, BEXP can defend each issue addressed to date….weather - West Williston workable versus other areas, transport - pipe vs. rail ( competitor OAS gave kudos to BEXP on their foresight of pipeline), services/proppant - you take care of your best customer and BEXP has been a strong advocate for Carbo and there is a very strong relationship between the two. We maintain our Buy on BEXP and have a price target of $39.
Source: Tudor Pickering Holt
Bexp
Re: Bexp
Brigham Exploration Announces the Gobbs 17-8 #1H Located in Roosevelt County, Montana Produces at an Early 24-Hour Peak Rate of Approximately 1,818 Barrels of Oil Equivalent 06/27 12:23 PM
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AUSTIN, TX -- (MARKET WIRE) -- 06/27/11 -- Brigham Exploration Company (BEXP:$26.9399,$0.0499,0.19%) announced the successful completion of the Gobbs 17-8 #1H Montana Bakken well at an early 24-hour peak rate of approximately 1,818 barrels of oil equivalent (1,544 barrels of oil and 1.64 MMcf of natural gas) after being fracture stimulated with 36 stages. The Gobbs 17-8 #1H, which is located approximately 16 miles west of the border between North Dakota and Montana in Roosevelt County, represents Brigham's second best early peak rate in Montana, relative to Brigham's Johnson 10-19 #1H which is located just under five miles from the border. Brigham anticipates that it will complete and bring on line to production four additional Montana Bakken wells over the next several months.
Bud Brigham, the Chairman, President and CEO, commented, "Our operations department has delivered another outstanding Montana Bakken well. We believe the Gobbs' result clearly begins to de-risk our Roosevelt County acreage, given that the well is located approximately 17 miles northwest of Brigham's Johnson 10-19 #1H, which came on line at a Montana Bakken well record of 2,962 barrels of oil equivalent per day. Finally, our operational activity in the Williston Basin continues to accelerate, we currently anticipate bringing on line to production a record operated 10 gross, or 5.8 net wells in the month of June, which will positively impact third quarter production and beats our previous record of 6 gross, or 3.9 net wells."
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AUSTIN, TX -- (MARKET WIRE) -- 06/27/11 -- Brigham Exploration Company (BEXP:$26.9399,$0.0499,0.19%) announced the successful completion of the Gobbs 17-8 #1H Montana Bakken well at an early 24-hour peak rate of approximately 1,818 barrels of oil equivalent (1,544 barrels of oil and 1.64 MMcf of natural gas) after being fracture stimulated with 36 stages. The Gobbs 17-8 #1H, which is located approximately 16 miles west of the border between North Dakota and Montana in Roosevelt County, represents Brigham's second best early peak rate in Montana, relative to Brigham's Johnson 10-19 #1H which is located just under five miles from the border. Brigham anticipates that it will complete and bring on line to production four additional Montana Bakken wells over the next several months.
Bud Brigham, the Chairman, President and CEO, commented, "Our operations department has delivered another outstanding Montana Bakken well. We believe the Gobbs' result clearly begins to de-risk our Roosevelt County acreage, given that the well is located approximately 17 miles northwest of Brigham's Johnson 10-19 #1H, which came on line at a Montana Bakken well record of 2,962 barrels of oil equivalent per day. Finally, our operational activity in the Williston Basin continues to accelerate, we currently anticipate bringing on line to production a record operated 10 gross, or 5.8 net wells in the month of June, which will positively impact third quarter production and beats our previous record of 6 gross, or 3.9 net wells."
Re: Bexp
Gross = 100% working interest.
Net = net to the company's working interest in each well. For example, if the company holds 50% working interest in two well that = one net well.
It has nothing to do with dry holes.
Net = net to the company's working interest in each well. For example, if the company holds 50% working interest in two well that = one net well.
It has nothing to do with dry holes.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group