Barclays on N. America Oil & Gas: E&P (Large Cap): Upgrade SWN; Top Picks are NFX, EOG, and DVN
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Price: $2.96 -1.99%
Rating Summary:
18 Buy, 8 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
18 Buy, 8 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on N America Oil & Gas: E&P (Large Cap): Upgrade SWN due to sharp sell off; top picks are NFX, EOG, and DVN
Barclays analyst says, "The sharp oil-price drop due to economic concerns has led us to lower 2011-2012 oil price assumptions. We believe E&P shares fairly discount long-term oil/gas price expectations of ~ $90/bbl for WTI and $4.50 natural gas."
"We are lowering our 2012 and mid-cycle WTI price assumption by $10 to $95/bbl. For comparison, Paul Cheng changed his WTI assumption to $98.40 last week. The 2012-2013 forward curve was $86 and $90/bbl at Monday's close. Our natural gas price assumptions remain $4.20/MMbtu for 2011 and $4.50/MMbtu for 2012-2103."
"We are reducing price targets by an average of 11%, 2012E EPS by 16% and '12E CFPS by 8%. Additionally, we are lowering 2011E EPS/CFPS by 8%/3%. The largest target price reductions are for COS, Kosmos Energy (NYSE: KOS) ($21 to $17), Pioneer Natural Resources (NYSE: PXD)($113.00 to $93.00) and NYSE Euronext, Inc. (NYSE: NXY)."
Upgrading Southwestern Energy (NYSE: SWN) on a price basis - SWN is virtually 100% a natural gas company thus the reduction in oil prices ahs not led us to lower our forecasts.
Barclays analyst says, "The sharp oil-price drop due to economic concerns has led us to lower 2011-2012 oil price assumptions. We believe E&P shares fairly discount long-term oil/gas price expectations of ~ $90/bbl for WTI and $4.50 natural gas."
"We are lowering our 2012 and mid-cycle WTI price assumption by $10 to $95/bbl. For comparison, Paul Cheng changed his WTI assumption to $98.40 last week. The 2012-2013 forward curve was $86 and $90/bbl at Monday's close. Our natural gas price assumptions remain $4.20/MMbtu for 2011 and $4.50/MMbtu for 2012-2103."
"We are reducing price targets by an average of 11%, 2012E EPS by 16% and '12E CFPS by 8%. Additionally, we are lowering 2011E EPS/CFPS by 8%/3%. The largest target price reductions are for COS, Kosmos Energy (NYSE: KOS) ($21 to $17), Pioneer Natural Resources (NYSE: PXD)($113.00 to $93.00) and NYSE Euronext, Inc. (NYSE: NXY)."
Upgrading Southwestern Energy (NYSE: SWN) on a price basis - SWN is virtually 100% a natural gas company thus the reduction in oil prices ahs not led us to lower our forecasts.
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