Imperial Capital Double Downgrades Extraction Oil & Gas (XOG) to Underperform

Imperial Capital analyst Irene Haas downgraded Extraction Oil & Gas (NASDAQ: XOG) from Outperform to Underperform with a price target of $2.00 (from $7.00).

The analyst comments "Operating in suburban counties such as Broomfield and Adams requires a more laborious and lengthy permitting process and this has impeded XOG’s ability to execute and generate FCF as planned and on a timely basis. In addition, basin-wide high line pressure, midstream delays, and operational glitches (some outside of the company’s control) also caused XOG to successively miss critical production and cash flow targets. XOG’s balance sheet has also been weakened by a poorly conceived share and debt repurchase program in 1H19. As the Series A Convertible Preferred Stock with a book value of about $185mn matures on 10/15/21 and with only $379mn available borrowing capacity as of 6/30/19, we are concerned about XOG’s liquidity as both the capital market and the A&D market have worsened for DJ producers. With the recent departure of its CFO, we are also concerned that XOG might not be equipped to weather additional commodity prices downdraft or operational upsets, planned or unplanned."

For an analyst ratings summary and ratings history on Extraction Oil & Gas click here. For more ratings news on Extraction Oil & Gas click here.

Shares of Extraction Oil & Gas closed at $2.51 yesterday.

You May Also Be Interested In

• Wolfe Research Downgrades T-Mobile (TMUS) to Peerperform
• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Indigo Paints (INDIGOPN:IN) PT Raised to INR1,300 at ICICI Securities