Seeking Alpha

Miller Energy +9% as Brean Capital starts coverage at Buy

  • Miller Energy Resources (MILL +9.1%) jumps higher after Brean Capital assumes coverage with a Buy rating and $8 price target.
  • Brean says MILL encountered some growing pains as it commenced its Alaska drilling program, but with progressively less expensive and higher quality financing, the company continues to ratchet up its oil-levered production rate.
  • With Alaska tax credits substantially lowering the cost to drill in the state vs. other locations and a high likelihood of leveraging existing facilities and manpower to reduce per unit operating expenses and G&A, Brean sees a brighter future for the shares.
Comments (1)
  • Darren McCammon
    , contributor
    Comments (1291) | Send Message
     
    Given the likely improvement to efficiency and the bottom line, I like the preferred even better.
    15 May, 03:01 PM Reply Like
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