Brigham Exploration Company (BEXP) announced results for one of its wells in the Bakken Shale today, prompting a 7% gain in its share price and securing a spot on the Zacks #1 Rank Top Performers List.

In addition to this company-specific news, BEXP is also getting a hand from an improving outlook for oil stocks as oil prices have finally broken out of its trading range.

Brigham Exploration is an independent exploration, development and production company that utilizes advanced exploration, drilling and completion technologies to systematically explore for, develop and produce domestic onshore oil and natural gas reserves.

It’s 1 of 3 companies from the Oil-U.S. Exploration & Production industry on today’s Zacks #1 Rank List, which includes 215 stocks in total. The other 2 names are Linn Energy, LLC (LINE) and Plains Exploration & Production Company (PXP).

Earnings estimates have been trending higher for BEXP. Furthermore, volume today is nearly 4 million shares, compared to the daily average of about 2.6 million.

Thanks Brad

Today, Brigham Exploration announced that its Brad Olson 9-16 #1H well produced an initial rate of about 2112 barrels of oil equivalent per day during an early 24-hour flow back period. The well is located in Williams County, North Dakota in its Rough Rider project area.

The company has about a 33% working interest in the well and a 26% net revenue interest.

BEXP is heavily invested in the Bakken Shale, located in North Dakota, Montana and Canada. The area could hold north of 3.5 billion barrels.

“The Brad Olson 9-16 #1H is yet another data point that confirms our belief that our Rough Rider area should be considered core acreage within the Williston Basin,” said Chairman/President/CEO Bud Brigham.

“Assuming three Bakken laterals per section, we could potentially drill over 240 net wells in our core Rough Rider area,” continued Mr. Brigham.

Earnings Estimates

The Zacks consensus Estimate for this year calls for a loss of 2 cents per share, which has narrowed by a penny in the past week and by 3 cents in the past 2 months.

Analysts expect a sharp return to profitability next year, as the Zacks Consensus Estimate is pegged at a profit of 24 cents. That guidance has advanced 33.3% in 2 months and 14.3% in 30 days.

Second Quarter

For its second quarter, announced in early August, BEXP reported a loss per share of 5 cents, which was 2 cents narrower than the Zacks Consensus Estimate for a loss of 7 cents.

Zacks Investment Research
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