Bexp
Posted: Fri Jun 24, 2011 9:02 am
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
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
