Canadian brokerage firm GMP Securities downgraded Trilogy Energy Corp (TET-TSX; TETZF-PINK) from a BUY to a HOLD today, but did not reduce its target price of $27.50 per share.  The stock closed at $27.25 on Tuesday, and GMP said the downgrade was because the stock has already hit its target price.  The stock recently hit $29 after coming up from a low of $10.02 in the last year.

Trilogy announced its Q2 results on Tuesday August 2.  It averaged 29,320 barrels of oil equivalent per day as compared with 25,362 boe per day for Q1 – a 16-per-cent increase quarter over quarter. The company increased oil and natural gas liquids production to 25 per cent of total production.  The company hit on 100% of its wells.

GMP did lower its fully diluted cash flow per share for 2011 from based on the Q2/11 results  – (specifically a lower 2011 liquids weighting), to $1.85 from $1.91.

Trilogy re-iterated its guidance to the market for average production in 2011 to be 30,000 boe/d, average operating costs of $7.75 per boe and capital expenditures (drilling and equipment costs) of $285 million.