Ladenburg Thalmann Reiterates Buy Rating for ARENA RESOURCES, INC. (ARD)

In a report released on 14th December, Ladenburg Thalmann has reiterated their Buy call for ARENA RESOURCES, INC. (NYSE: ARD) as the analyst Noel A. Parks feels that there is a clear sense of things being just about coming back to normal for the company.

The analyst from Ladenburg Thalmann attended the recent Open house of the company & the major highlights from the meeting include:

1. Acquisitions clearly on their minds, with a slightly new twist.
ARENA RESOURCES tends to be a disciplined and patient acquirer, and it is anticipated that this will not change. Among the most visible deals in the Permian Basin this year have been those announced by public companies that chose to shed the assets in order to concentrate on nascent natural gas shale plays.

2. The Company’s previously announced plans to perform a Clear Fork test in the western part of its Fuhrman-Mascho acreage remain in place
The analyst Noel A. Parks continues to expect nearly a 30% production growth next year & he has also raised 4Q09 estimates on pricing. The analyst sees a considerable risked NAV upside potential if crude holds its $60+/bbl trading range. The $44 per share risked NAV that report has taken assumes long term crude oil pricing of just $45/bbl.