Upgrade. by: anniesdad_2000 (60/M/Coos Bay, Or.) 01/27/05 10:22 am Msg: 1156 of 1158
09:07 XEC Cimarex upgraded to Strong Buy from Buy at Sanders Morris (36.06 )
Sanders Morris upgrades XEC to Strong Buy from Buy noting that they like the merger with MHR and find the current valuation attractive. Firm believes that XEC did not stress their balance sheet to do the deal, the combined co will have one of the lowest debt ratios in the sector, and that the deal should be dilutive to earnings but accretive to cash flow. Firm believes the diversified portfolio and the 925 locations onshore would give XEC more running room and a better chance of hitting bigger targets.