KeyBanc Downgrades Bill Barrett (BBG) to Sector Weight

KeyBanc downgraded Bill Barrett (NYSE: BBG) from Overweight to Sector Weight. Analyst Chris Stevens thinks earnings could disappoint.

"We believe the likelihood of disappointing upcoming well results combined with a full valuation could limit further outperformance, especially as we see the need for $60/bbl oil price to catalyze an increase in activity given high leverage and wide cash flow deficits post-2016 as hedges roll off. Thus, we are downgrading to SW. We believe upcoming well results likely to be announced with earnings could disappoint, as state prod data shows the 9-well Will pad underperforming ~59% after 3 months, and raises question of how much of BBG’s acreage is derisked and truly prospective for economic Niobrara development," said Stevens.

For an analyst ratings summary and ratings history on Bill Barrett click here. For more ratings news on Bill Barrett click here.

Shares of Bill Barrett closed at $9.35 yesterday.

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