The company has a deep inventory in the Wattenberg with over 2,000 net future drilling locations, and plans to drill 30% of its Wattenberg wells with XRLs in 2015, according to the analyst note.
"We believe that Bonanza Creek Energy offers an attractive way to play the Denver-Julesburg Basin. With a fairly contiguous 70,000 net acre position in the Wattenberg Field, the company has a sizable, high-quality asset to exploit," Canaccord analysts said.
Bonanza Creek Energy is an energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the U.S.
Shares of Bonanza Creek Energy are increasing 3.18% to $18.52 in morning trading Tuesday.
Separately, TheStreet Ratings team rates BONANZA CREEK ENERGY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BONANZA CREEK ENERGY INC (BCEI) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."