Michael Filloon
Oil & gas, energy, hedge fund manager, commodities

Bakken Update: Bonanza Creek Is Up Over 20%, More Potential Ahead

Bonanza Creek (NYSE:BCEI) may be the best way to play the Niobrara. It had value into earnings, after notifying its CEO was retiring. This wasn't good news, but it didn't justify the pullback. There are several reasons to like Bonanza, but it became much more appealing after quarterly miss. This worsened during the call, as management was evasive and ended it early with questions still on the line. This evasiveness was centered on well design, as analysts asked inquired about pad 2 of the Super-Section test. 40-acre spacing results seemed to point out that 80-acre spacing of the Niobrara was optimal. Although it was tough on those that already owned the stock, it provided another opportunity. Bonanza posted ...

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