KeyBanc Bullish on PDC Energy Inc (PDCE)

By Shoshana Perez

Analyst David Deckelbaum of KeyBanc maintained a Buy rating on PDC Energy Inc (NASDAQ:PDCE) raising the price target to $76, following the $1.5 billion acquisition in the Delaware Basin.

According to Deckelbaum, “PDCE is paying $30K/acre for the highest quality portion of the deal, which is in line with recent comps and $20K/acre overall.” The analyst further commented that the acquisition could result in an “11% accretion to RNAV”, considering the original funding of two-thirds debt and one-third equity. This achievement for 57K net acres in Culberson and Reeves, TX, along with 7 MBOED would still have the potential to leave some equity for YE16 in order to expand beyond the two rigs.

According to TipRanks, PDC Energy has been rated by 8 analysts in the past 3 months. 75% gave a Buy rating and 25% gave a Hold rating. The average 12-month price target for the stock is $74.83, marking an 11.77% upside from current levels.