Oppenheimer Reiterates Perform Rating On Petrohawk Energy

According to Oppenheimer, Petrohawk Energy (NYSE: HK) is up 37% YTD, compared to 11% for its peers and 7.5% for the S&P 500.

Oppenheimer said that it reiterates its Perform rating on HK shares, as it believes that the upside from its high production growth rate is offset by a depressed natural gas price outlook, which it does not expect to improve meaningfully any time soon. “HK shares have outperformed their peer group since last week's earnings release, when it raised full-year production growth guidance to 41% from the prior 31%, announced the sale of its remaining 50% interest in the KinderHawk Field Services and disclosed its acquisition of 325K net acres in the Permian Basin. This acquisition increases HK's exposure to liquids-rich plays, but we do not expect meaningful production levels until 2013 at the earliest.”

Petrohawk Energy closed yesterday at $25.82.