UPDATE - Global Hunter Securities Downgraded ATP Oil & Gas (ATPG) to Reduce; The Path to De-Leveraging Just Got Longer
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Price: $0.31 --0%
Rating Summary:
0 Buy, 1 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
Rating Summary:
0 Buy, 1 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 13
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UPDATE - Global Hunter Securities downgraded ATP Oil & Gas (NASDAQ: ATPG) from Accumulate to Reduce, price target lowered from $14 to $6.25.
Global analyst says, "ATP Oil & Gas reported a better-than-expected quarter aided by gains on hedging of approximately $86MM. However, ATP's leverage continues to increase and any de-leveraging looks to be more than 12 months away. It would seem timing of permits continues to be a moving target, and while things are clearly getting better from a regulatory standpoint, ATPG continues to outspend its cash flow. While it should see a modest bump up in 1Q12 production with the fourth well at Telemark, other growth initiatives are now being pushed out until 3Q12 and beyond. While oil prices, especially in the GOM, remain robust and at a premium to WTI prices, lower production estimates for 2012 lead us to believe that capex will exceed cash flow in 2012, delaying any de-leveraging event. As such, we are lowering our rating"
To See Ratings Summary & History on ATPG, Click Here
Global analyst says, "ATP Oil & Gas reported a better-than-expected quarter aided by gains on hedging of approximately $86MM. However, ATP's leverage continues to increase and any de-leveraging looks to be more than 12 months away. It would seem timing of permits continues to be a moving target, and while things are clearly getting better from a regulatory standpoint, ATPG continues to outspend its cash flow. While it should see a modest bump up in 1Q12 production with the fourth well at Telemark, other growth initiatives are now being pushed out until 3Q12 and beyond. While oil prices, especially in the GOM, remain robust and at a premium to WTI prices, lower production estimates for 2012 lead us to believe that capex will exceed cash flow in 2012, delaying any de-leveraging event. As such, we are lowering our rating"
To See Ratings Summary & History on ATPG, Click Here
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