SM upgraded

[setliff]

Analyst Actions: Piper Jaffray Upgrades SM Energy to Overweight from Neutral
MIDNIGHT TRADER 8:12 AM ET 8/15/2016

[setliff]

8:31 ET - Simmons upgrades SM Energy(SM) to overweight from neutral, calling its recently-announced acquisition of nearly $1B in assets in west Texas's oil-rich Permian basin "transformational." The purchase "provides the company ample inventory to start closing the valuation gap with peers." The company's stock is up 30% since Aug. 1. CEO Jay Ottoson told WSJ last week its move into the Permian reflects the company's belief the oil bust is ending: "In the bottom of the cycle you want to build assets, to add assets with higher quality than you already have, and actually stretch the balance sheet a little bit to gain a competitive advantage." (dan.molinski@wsj.com)

[dan_s]

Yes, the Permian Basin acquisition will draw a lot more attention to SM from the Wall Street gang. They love the Permian Basin and they have discounted SM's Eagle Ford acreage because they consider it too "gassy".