Petrohawk (HK) Bid from BHP (BHP) Pushes Up (PXD) (SM) (SFY)

Shares of companies like Pioneer Natural Resources (NYSE:PXD), SM Energy (NYSE:SM) and Swift Energy (NYSE:SFY), which own acreage in Eagle Ford, got a big boost from the premium offered from BHP Billiton (NYSE:BHP) for Petrohawk (NYSE:HK).

BHP's bid of $38.75 a share, was a 60 percent premium over the Thursday close of $23.79 a share by Petrohawk. The $12.1 billion bid was an all-cash offer.

Immediate response from some analysts is this deal is more than likely specific to Petrohawk, rather than an industry consolidation trend. Even so, it is good news for some in the natural gas industry, which could benefit from possible higher valuations as a result.

Swift Energy was trading at $40.92, gaining $3.18, or 8.43 percent, as of 10:51 AM EDT. SM Energy was at $77.97, up $5.83, or 8.08 percent. Pioneer Natural Resources was trading at $92.91, up $6.82, or 7.92 percent. HK was at $28.21, jumping $14.72, or 62.66 percent.

Other companies with large exposure to natural gas were also trading up on the day. EOG Resources (NYSE:EOG) was trading at $100.98, up $4.27, or 4.42 percent. EQT Corporation was at $57.13, gaining $2.40, or 4.39 percent. Carrizo Oil & Gas was at $39.44, up $1.45, or 3.82 percent. Chesapeake Energy (NYSE:CHK) was at $32.12, soaring $1.91, or 6.32 percent.

Pioneer Natural Resources holds 310,000 acres in the Eagle Ford. SM Energy holds 250,000 acres in the Eagle Ford, and Swift Energy holds 79,000 acres in the Eagle Ford.

BHP was trading at $91.15, down $1.13, or 1.22 percent.

Lucas Energy (LEI) Skyrocketing on Unrest, Shale Play

Lucas Energy (AMEX:LEI) appears to be the beneficiary of the unrest in the Middle East, as it seems companies with shale exposure are experiencing a trickle down effect from the crisis.

Add to that the recent announcement the company has completed a test well in the Eagle Ford Shale in Texas earlier this week, and you have a scenario that is resulting in the shares of the company surging.

The test well in Texas is projected to meet or exceed expectation of initial test potential of 500 barrels of oil a day and increase the company's net production, cash flow from producing wells and net proven reserves.

Lucas was trading at $4.23, up $1.06, or 33.44 percent, as of 1:33 PM EST.

Anadarko's (NYSE:APC) Amazing Comeback, Are They Fully Priced

After the Macondo well disaster in the Gulf of Mexico, which Anadarko (NYSE:APC) had a 25 percent stake in, with BP (NYSE:BP) holding 65 percent, Anadarko has been soaring, rising from under $35 a share in the early part of June to close at over $80 Wednesday.

Considering Anadarko's potential exposure to fines and lawsuits, it's a remarkable performance. And even without that weighing on the company, it's still a amazing comeback.

While shares in Anadarko have been steadily rising, they got a nice boost on rumors they could be a takeover target of mining giant BHP Billiton (NYSE:BHP). Since that time, the push they received from the speculation has remained, and even been enhanced since the end of 2010.

Also a major factor in the performance of Anadarko, which is helping the overall oil sector, are expectations the price of oil will continue to rise.

Even the loss of business in the Gulf of Mexico hasn't slowed down the company. That's mostly because of their strong onshore projects in Marcellus and Eagle Ford.

The only major thing weighing on Anadarko is their Caesar/Tonga complex, which they co-own with Chevron (NYSE:CVX), Statoil (NYSE:STO) and Royal Dutch Shell (NYSE:RDS-A). The start-up of that asset has been delayed.

What the question is now after the extraordinary run is if the company is now fully priced. Some investors think so, and are going to wait on the sidelines until there's a pullback.

Anadarko closed Wednesday at $80.03, gaining $1.49, or 1.90 percent.

Pioneer Natural Resources (NYSE:PXD) Capitalized for Drilling Acceleration

Contrary to some of their peers, Pioneer Natural Resources (NYSE:PXD) has the capital to accelerate drilling at its Eagle Ford Shale and Spraberry Trend projects.

Global Hunter says, "Pioneer is accelerating its drilling activity in the prolific and liquid-rich Spraberry Trend and Eagle Ford Shale plays, with upside to current market expectations. The company's recent sale of Tunisian assets provides substantial capital to further accelerate development."

Global Hunter Securities launched coverage on Pioneer Natural Resources (NYSE:PXD) with a "Buy." Pioneer closed Friday at $91.15, up $1.77, or 1.98 percent. Global has a price target of $120 on Pioneer.

Magnum Hunter (NYSE:MHR) Ready to Soar Says Canaccord

Magnum Hunter (NYSE: MHR) has a powerful asset base and strong growth potential, says Canaccord, and is ready to outperform in their view.

Canaccord says, "We are increasingly constructive on Magnum Hunter’s asset base and relative growth potential. In particular, we are very encouraged by the announced transactions and MHR’s strong start in the Eagle Ford and Marcellus projects. We believe the stock is well positioned to outperform based on its leading exposure to the Eagle Ford, Marcellus, and Bakken oil trends and material catalysts (Eagle Ford wells, bolt-on transactions and JV partnerships). In addition, we continue to encourage investors to note that MHR projects very well into 2012 based on the growth and quality of its 2011 investments."

Canaccord Genuity maintains a 'Buy' rating on Magnum Hunter (MHR), which closed Tuesday at $7.00, down $0.19, or 2.64 percent. Canaccord raised their price target on Magnum Hunter to $8.75.

Magnum Hunter (NYSE:MHR) Has Catalyst Galore Says Jefferies (NYSE:JEF)

Citing their exposure to WV Marcellus, Eagle Ford, with their first well in Ohio Marcellus about to come online, Jefferies (NYSE:JEF) sees Magnum Hunter (NYSE:MHR) performing strongly.

Results from Eagle Ford and WV Marcellus are expected to be released soon, which should come back positive.

Even though 2011 may take some time to play out, heading into 2012 Jefferies sees Magnum Hunter's share price soaring.

For full year 2011 they lowered their EPS estimate on Magnum from $0.25 to $0.15, while keep an EPS estimate of $0.15 for 2012.

As for price targets, that has been raised by Jefferies on Magnum in 2012 from $4.80 to $11.

Jefferies maintains a "Buy" rating on Magnum, which was trading at $7.28, down $0.64, or 8.08 percent, as of 12:23 PM EST.

Newfield Exploration (NYSE:NFX) Results from Eagle Ford Drilling

Newfield Exploration (NYSE:NFX) released the results of their drilling of 11 wells in the Eagle Ford shale.

FBR noted, "Last night, NFX reported results from 11 wells drilled in the Eagle Ford shale. The wells had initial production (IP) between 400 Boe/day and 900 Boe/day, implying estimated ultimate recoveries (EURs) in the range of 200 Mboe–400 Mboe. Importantly, about 70% of the 300,000 net acres the company holds in the Eagle Ford is in the deeper, higher-pressured southern portion, which exhibited IPs and EURs in the 700 Boe/d–900 Boe/d range, implying a 400+ MBoe EUR potential and 45% pretax IRR at $80/bbl. Without assigning any value to Newfield's northern acreage, we estimate its southern Eagle Ford position to be worth $2.7 billion or about $21/share. We note that because of the shallower depths of the Maverick Basin there was some concern in the marketplace that the whole Eagle Ford position is sub-optimal."

FBR Capital maintains an "Outperform" rating on Newfield Exploration, which was trading at $71.96, down $0.09, or 0.12 percent, as of 11:19 AM EST. FBR has as price target of $85 on Newmont.

Investors await Newfield Exploration's (NYSE:NFX) Bakken, Eagle Ford Results

Interestingly, Wells Fargo (NYSE:WFC) downgraded Newfield Exploration (NYSE:NFX) even while acknowledging it could be risky before the results from Eagle Ford and Bakken come in.

Wells said, "In 2011, however, we expect shares to take a breather as the share price nears our NAV and investors look to pinpoint exposure to catalyst driven stories. Speaking of catalysts, we recognize the risks to the downgrade ahead of South Alberta Bakken and Eagle Ford results. In the South Alberta Bakken results are not expected until the Q2-Q3 2011 timeframe. In the Eagle Ford, results for the first 13 well batches are expected in Q1 2011, though we include $4.84 per share in our NAV for the Eagle Ford potential. Still a solid company and management team; however, we believe risk/reward favors other names in the current environment."

Wells Fargo downgraded Newfield Exploration from "Outperform" to "Market Perform." Newfield closed Friday at $70.82, down $0.24, or 0.34 percent. Wells has a range of $74 to $78 on the company.

Abaxis (NASDAQ:ABAX) Oil Plays Driving Company in 2011

Abaxis Inc. (NASDAQ:ABAX) have wells in the Bakken, Eagle Ford, Niobrara, and Pekisko ready to go online in 2011, and assuming successful execution, should increase the value of the company going forward.

Needham said, "We are reiterating our rating and raising our target price based on Abraxas’s transformation progress, improving balance sheet and growing exposure to an oil-weighted production base. We continue to believe there is significant value embedded in the company’s oil plays that will be unlocked over the next year through the successful execution of its first wells in the Bakken, Eagle Ford, Niobrara, and Pekisko projects. We estimate these trends alone offer an - 23 mmboe of risked (+60 mmboe of unrisked) resource potential."

Needham & Company reiterates a "Buy" on Abaxis Inc., which closed Tuesday at $27.99, up $0.17, or 0.61 percent.