Canaccord Genuity on Energy -- Oil and Gas, Exploration and Production: Q3 Preview
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Price: $40.67 --0%
Rating Summary:
20 Buy, 31 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
20 Buy, 31 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Canaccord Genuity on Energy -- Oil and Gas, Exploration and Production: Q3 Preview
Canaccord analyst, John Gerdes, said, "Over the next year, we see 60%+ E&P equity value upside relative to current market levels. We continue to favor companies that are aggressively transitioning toward oil development given our expectation of robust oil prices and weak natural gas fundamentals the next couple years."
Marcellus Overbought – Downgrading Range Resources (NYSE: RRC) to SELL
"Marcellus consolidation enthusiasm is evident in ~30% intrinsic takeover value in Range Resources (RRC) and EQT Corporation (NYSE: EQT) shares. We believe the very real impediment to further meaningful consolidation in the Marcellus trend is the inability to materially increase capital spending beyond already elevated levels given the take-away/gas processing limitations endemic in the region."
Crude Oil Outlook
"We are lowering our Brent price forecast ~$2 to ~$108.50 in ’11, $5 to $100 in ’12 and $5 to $105 in ’13. Our WTI forecast falls ~$5 to ~$91.50 in ’11, $7.50 to $85 in ’12 and $5 to $92.50 in ’13. The lower WTI forecast in ’12 reflects a $2.50 increase in the projected Brent/WTI spread to $15 specific to next year due to delays in pipelines necessary to alleviate the interior North American supply glut. Overall, our lower oil price forecast reflects lower economic growth in ’11/’12 than previously anticipated and is modestly amplified by lower developed world oil demand intensity."
Natural Gas Outlook
"We are lowering our ’11 gas price forecast from $4.23 to $4.09 as we trued up Q3 numbers and lowered our Q4 expectation from $4.25 to $3.75. We are also lowering our ’12 NYMYEX gas price forecast $0.50 to $4 as our outlook for gas-directed drilling activity is ~75 rigs higher than our prior expectation, which should drive November ’12 storage to a robust 4,100+ Bcf finish. Our ’13 NYMEX price forecast remains unchanged at $5."
Favorite Stocks Include: Comstock (NYSE: CRK), Carrizo Oil & Gas (Nasdaq: CRZO), EOG Resources (NYSE: EOG) and Goodrich (NYSE: GR), Newfield Exploration (NYSE: NFX) and Penn Virginia (NYSE: PVA)
Canaccord analyst, John Gerdes, said, "Over the next year, we see 60%+ E&P equity value upside relative to current market levels. We continue to favor companies that are aggressively transitioning toward oil development given our expectation of robust oil prices and weak natural gas fundamentals the next couple years."
Marcellus Overbought – Downgrading Range Resources (NYSE: RRC) to SELL
"Marcellus consolidation enthusiasm is evident in ~30% intrinsic takeover value in Range Resources (RRC) and EQT Corporation (NYSE: EQT) shares. We believe the very real impediment to further meaningful consolidation in the Marcellus trend is the inability to materially increase capital spending beyond already elevated levels given the take-away/gas processing limitations endemic in the region."
Crude Oil Outlook
"We are lowering our Brent price forecast ~$2 to ~$108.50 in ’11, $5 to $100 in ’12 and $5 to $105 in ’13. Our WTI forecast falls ~$5 to ~$91.50 in ’11, $7.50 to $85 in ’12 and $5 to $92.50 in ’13. The lower WTI forecast in ’12 reflects a $2.50 increase in the projected Brent/WTI spread to $15 specific to next year due to delays in pipelines necessary to alleviate the interior North American supply glut. Overall, our lower oil price forecast reflects lower economic growth in ’11/’12 than previously anticipated and is modestly amplified by lower developed world oil demand intensity."
Natural Gas Outlook
"We are lowering our ’11 gas price forecast from $4.23 to $4.09 as we trued up Q3 numbers and lowered our Q4 expectation from $4.25 to $3.75. We are also lowering our ’12 NYMYEX gas price forecast $0.50 to $4 as our outlook for gas-directed drilling activity is ~75 rigs higher than our prior expectation, which should drive November ’12 storage to a robust 4,100+ Bcf finish. Our ’13 NYMEX price forecast remains unchanged at $5."
Favorite Stocks Include: Comstock (NYSE: CRK), Carrizo Oil & Gas (Nasdaq: CRZO), EOG Resources (NYSE: EOG) and Goodrich (NYSE: GR), Newfield Exploration (NYSE: NFX) and Penn Virginia (NYSE: PVA)
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