Petroleum Development upgraded, shares rise

Petroleum Development upgraded, shares rise sharply; analyst predicts better gas prices

• On 3:28 pm EST, Monday November 9, 2009

NEW YORK (AP) -- Shares of Petroleum Development Corp. jumped on Monday as an analyst upgraded the oil and gas company, predicting improvement on the price the company gets for the natural gas it sells.

Petroleum Development shares rose $2.08, or 11.9 percent, to $19.56 in afternoon trading. The stock has ranged from $9.39 to $27.98 over the past year.

SunTrust Robinson Humphrey analyst John Gerdes raised his rating to "Buy" from "Neutral" and his share price target to $24 from $22.

Natural gas prices rose 3.2 cents to $4.625 per 1,000 cubic feet in afternoon trading. The pace of natural gas price recovery has been sluggish in 2009, amid a supply glut and weak demand.

But Gerdes thinks Petroleum Development will see better prices going forward.

The company's operational catalysts include its primary development areas, which are Rocky Mountain Wattenberg, Grand Valley and NECO Fields, along with Castle Field in the Appalachian Basin, said Gerdes.