Forest Oil (FST) Remains Sell-Rated at Goldman Following 2014 Guidance

December 3, 2013 12:59 PM EST Send to a Friend
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Price: $1.03 -3.74%

Rating Summary:
    5 Buy, 15 Hold, 3 Sell

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    Up: 15 | Down: 28 | New: 35
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Goldman Sachs maintained a Sell rating on Forest Oil (NYSE: FST) with a price target of $4.50. Comments follow Forest Oil's announcement about 2014 capital budget and guidance.

Analyst Jami Rubin said, "Production guidance of 120-130 MMcfe/d was in line with our prior estimates. Capital budget of $290-$310 million was slightly higher than our estimates. Oil in the production mix was greater than expected, while cash and non-cash operating costs were both higher than expected."

"The scope for resource improvement in the Eagle Ford to take growth and rates of return to a higher level is key for greater credit. With capex slightly higher (though well costs are falling) and cash costs higher than expected, there is no change to our view regarding sub-par corporate cash return on cash invested and ongoing free cash deficits," he added.

For an analyst ratings summary and ratings history on Forest Oil click here. For more ratings news on Forest Oil click here.

Shares of Forest Oil closed at $4.42 yesterday.


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