UPDATE - UBS Downgraded Quicksilver Resources (KWK) to Neutral; Reduced Natural Gas Price Forecast, Funding Deficit
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Price: $0.15 --0%
Rating Summary:
0 Buy, 6 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 6 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - UBS downgraded Quicksilver Resources (NYSE: KWK) from Buy to Neutral, price target lowered from $13 to $11.
UBS analyst says, "Despite materially underperforming YTD, we are lowering KWK to Neutral based on our lower long term natural gas price outlook as well as concerns about KWK’s high financial leverage and a large FCF deficit that threatens its longer term growth outlook. We do not believe the JVs it seeks in the Horn River Basin midstream or its emerging resource plays will attract enough capital to reduce our concerns with its financial flexibility."
"KWK’s net debt to total capital of 71% is already well above peers’47%. Notably, we estimate KWK’s DAPPS growth in 2011-12 is 4% and 13%, below the resource play peers’ 9% and 15%."
To see more ratings changes on KWK, Click Here
UBS analyst says, "Despite materially underperforming YTD, we are lowering KWK to Neutral based on our lower long term natural gas price outlook as well as concerns about KWK’s high financial leverage and a large FCF deficit that threatens its longer term growth outlook. We do not believe the JVs it seeks in the Horn River Basin midstream or its emerging resource plays will attract enough capital to reduce our concerns with its financial flexibility."
"KWK’s net debt to total capital of 71% is already well above peers’47%. Notably, we estimate KWK’s DAPPS growth in 2011-12 is 4% and 13%, below the resource play peers’ 9% and 15%."
To see more ratings changes on KWK, Click Here
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