- Jones Energy (OTC:JONE +9.6%) is upgraded to Buy from Hold with a $6 price target, doubled from $3, at Stifel, based on the company's exposure to the emerging southern extension of Oklahoma's prolific STACK play.
- Stifel notes that Jones recently acquired 18M net acres in central Oklahoma that initially appeared to be located on the southern fringe of the STACK play, but activity is increasing in the immediate area, where nine rigs are currently operating compared to just five a month ago.
- While the Woodford Shale is thinner in the extension area, the firm says better lateral targeting and improved completions are yielding early production rates that are comparable to the core of the play.