Swift Energy shares rise after price target boost

Light, sweet crude for July delivery jumped to a trading record of $139.89 before retreating to trade up $2.10 at $136.96 a barrel on the New York Mercantile Exchange. A sharply weaker dollar helped fuel the rally.

Before markets opened, Lehman analyst Jeffrey Robertson raised his target price on Swift by a dollar to $62 per share. The analyst also increased his earnings estimates on the Houston company to account for higher energy price expectations.

The investment bank expects benchmark oil prices will now average $113 a barrel this year, up from a previous forecast of $97.50. For 2009, Lehman expects oil prices will average $90 a barrel, up $5 from an earlier forecast.

Those higher expectations led Robertson to predict Swift will post earnings of $8.45 per share this year, up from $7.30 previously forecast.

That is considerably higher than Wall Street's average forecast of $8.17 per share, according to a survey of analysts by Thomson Financial.

"Given the relative strength of oil prices, we continue to favor producers with a higher mix of oil production," Robertson said in a related research note.

Besides Swift, midcap companies in that group include Denbury Resources Inc., Whiting Petroleum Corp., Concho Resources Inc. and Plains Exploration & Production Co., Robertson said. Shares of each rose.

On Friday, Swift completed the sale of most of its New Zealand assets for $82.7 million. The company expects to close the sale of the rest of its assets in the country in the coming months.

Swift shares gained $1.08 to $60.14 in late-morning trading, after earlier rising as high as $60.62.