HOUSTON, Texas - EV Energy Partners (Nasdaq: EVEP) surged premarket on July 29 as Chesapeake (NYSE: CHK) announced a "major new liquids-rich discovery" in the Utica Shale play of eastern Ohio.
EVEP owns some 150,000 net acres and has royalty rights on another 80,000 in the Utica Shale.
EVEP on July 29 reached an interday high of $73.37, up $9.50, before closing at $70.99, up $7.12, in heavy trading of more than 1.5 million units.
Chesapeake Energy's disclosure of the Ohio gas find came as part of its second-quarter financial report, in which it announced that its profit doubled as production increased, while prior-year results included a derivatives loss. Chesapeake shares rose on July 29 as results topped analysts' expectations. However, the units closed up by only $0.92 per share. The stock closed at $34.35. Chesapeake said it values its Utica Shale holdings at a possible $12,000 to $16,000 an acre.
Oppenheimer and Wells Fargo on July 29 raised their rating on EVEP to outperform, with the former setting an $85 price target and Wells boosting its to about $76 from $56. "We acknowledge that we are relatively late to the game," says Oppenheimer, "but believe there is significant upside remaining."