Actionable news
0
All posts from Actionable news
Actionable news in MRO: MARATHON OIL CORPORATION,

Here's Why Marathon Oil, Parsley Energy Are Top Picks in 2016

Marathon Oil's (MRO) decision to acquire privately held PayRock Energy LLC for $888 million, expanding its Oklahoma basin operations, provides yet another glimpse into the increasing prioritization of low-cost unconventional play acreage by U.S. operators.

Morgan Stanley (MS) analysts, who downgraded MRO in January leading into decade-low oil prices, recognized that motive Tuesday and viewed the asset purchase as a positive catalyst.

The firm upgraded Marathon stock, which surged yesterday following the deal news but eased early Tuesday with slumping oil, to "overweight" from "equalweight" with an increased price target of $21 per share.

Morgan Stanley's price target represents a 31% upside potential from MRO's Monday closing price of $14.48 per share. Marathon's share price was up again Tuesday, however, surging nearly 1.5% to $14.70 apiece around midday.

With Monday's deal for Oklahoma City-based PayRock, which has about 61,000 net surface acres and current production of about 9,000 net...


More