McMoRan Exploration Co. (NYSE: MMR) is engaged in exploring for and producing oil and natural gas in the Gulf of Mexico and the Gulf Coast region. The company owns or controls interests in approximately 400 oil and gas leases in the Gulf, Louisiana and Texas. These cover some 370,000 acres. Altogether, the firm has proved reserves of about 41.2 billion cubic feet of natural gas and 5.8 million barrels of oil and condensate. McMoRan is also pursuing plans for the development of the Main Pass Energy Hub, a proposed offshore liquefied natural gas terminal. Chevron (NYSE: CVX) is a major competitor.

Investors were pleased last week by a Sterne Agee initiation of the stock at "buy" and a favorable update of the company's exploration and development activities in the Gulf of Mexico. Regarding the latter, the firm announced a successful production test at the Flatrock Field No. 2 well and an agreement allowing it to earn working interests in a relatively shallow water well on the Gulf of Mexico shelf.

MOST NOTEWORTHY: Merck (MRK), McMoRan Exploration (MMR), TheStreet.com (TSCM), Goodrich Petroleum (GDP) and Coventry Health (CVH) were today's noteworthy upgrades:

• Cowen is optimistic on Merck's (NYSE: MRK) business momentum, key products, and pipeline, and upgraded the pharmaceutical giant to Outperform from Neutral.

• JP Morgan believes the recent discoveries have created a lower risk profile for McMoRan Exploration (NYSE: MMR), upgrading shares to Overweight from Neutral.

• Needham upgraded shares of TheStreet.com (NASDAQ: TSCM) to Strong Buy from Buy on the Corsis acquisition as they believe the deal strengthens the company's advertising business.

• Jefferies upgraded shares of Goodrich Petroleum (NYSE: GDP) to Buy from Underperform as they believe success at the James Lime development program will grow production and cash flow.

• Banc of America upgraded Coventry Health (NYSE: CVH) to Neutral from Sell as they believe the company's three recent acquisitions will accelerate growth beginning next year...

OTHER UPGRADES:

• WestLB upgraded Nokia (NYSE: NOK) to Buy from Add.

• Bear Stearns upgraded Take-Two Interactive Software (NASDAQ: TTWO) to Peer Perform from Underperform and Electronic Arts (NASDAQ: ERTS) to Outperform from Peer Perform.

• Citigroup raised AnnTaylor Stores (NYSE: ANN) to Hold from Sell.

• Buckingham upgraded DirecTV (NYSE: DTV) to Neutral from Underperform.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).