Barclays on North America Oil & Gas: E&P (Large Cap): Upgrading CVE, NXY and AP; Downgrading Gas-producer SWN
Tweet
Share
E-mailGet Alerts CVE Hot Sheet
Price: $32.48 --0%
Rating Summary:
6 Buy, 18 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
6 Buy, 18 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Join SI Premium – FREE
Barclays on North America Oil & Gas: E&P (Large Cap): Upgrading CVE, NXY and APC and downgrading gas-producer SWN
Barclays analyst, Thomas R. Driscoll, said, "We are lifting our mid-cycle WTI price assumption by $5 to $95/bbl, while our HH price assumption remains $4.25/MMbtu. We are raising our 2012 WTI oil price assumption $5/bbl to $95/bbl and lowering our natural gas price assumption by $0.25 to $3.75/MMBtu. By comparison, the calendar year 2012 price curve was $98/bbl and $3.74/MMbtu at Tuesday's close."
"We are shifting recommendations towards oil-oriented and Canadian producers. We are upgrading 2 Canadian oil producers (Cenovus Energy (NYSE: CVE) and Nexen (NYSE: NXY)) based largely on the recent share price under-performance combined with the modest improvement in the oil price outlook over the past 2 months. We are upgrading Anadarko Petroleum (NYSE: APC) to reflect continued strong exploration results and downgrading Southwestern Energy (NYSE: SWN) to reflect a deteriorating outlook for natural gas prices - SWN derives ~99% of production revenue from natural gas."
"Top picks include Apache (NYSE: APA), Devon (NYSE: DVN), EOG Resources (NYSE: EOG), Newfield (NYSE: NFX) and QEP Resources (NYSE: QEP). Our top quartile (using target price upside) includes several names with very different risk-reward trade-offs. We believe the higher risk/higher reward names are APA and NFX - at about a 20% and 30% discount to peers (using EV/2013E PICF), respectively. If fears of Egyptian unrest recede, APA's multiple could sharply increase; better-than-expected 2012 guidance from NFX could be a catalyst for a higher share price."
"We are raising price targets by an average of 8%, 2012E EPS by 4%, and 2012E CFPS by 5%. The largest target price increases are for NFX, NXY and CNQ."
Barclays analyst, Thomas R. Driscoll, said, "We are lifting our mid-cycle WTI price assumption by $5 to $95/bbl, while our HH price assumption remains $4.25/MMbtu. We are raising our 2012 WTI oil price assumption $5/bbl to $95/bbl and lowering our natural gas price assumption by $0.25 to $3.75/MMBtu. By comparison, the calendar year 2012 price curve was $98/bbl and $3.74/MMbtu at Tuesday's close."
"We are shifting recommendations towards oil-oriented and Canadian producers. We are upgrading 2 Canadian oil producers (Cenovus Energy (NYSE: CVE) and Nexen (NYSE: NXY)) based largely on the recent share price under-performance combined with the modest improvement in the oil price outlook over the past 2 months. We are upgrading Anadarko Petroleum (NYSE: APC) to reflect continued strong exploration results and downgrading Southwestern Energy (NYSE: SWN) to reflect a deteriorating outlook for natural gas prices - SWN derives ~99% of production revenue from natural gas."
"Top picks include Apache (NYSE: APA), Devon (NYSE: DVN), EOG Resources (NYSE: EOG), Newfield (NYSE: NFX) and QEP Resources (NYSE: QEP). Our top quartile (using target price upside) includes several names with very different risk-reward trade-offs. We believe the higher risk/higher reward names are APA and NFX - at about a 20% and 30% discount to peers (using EV/2013E PICF), respectively. If fears of Egyptian unrest recede, APA's multiple could sharply increase; better-than-expected 2012 guidance from NFX could be a catalyst for a higher share price."
"We are raising price targets by an average of 8%, 2012E EPS by 4%, and 2012E CFPS by 5%. The largest target price increases are for NFX, NXY and CNQ."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Freedom Broker Upgrades John B. Sanfilippo & Son, Inc. (JBSS) to Buy
- Marti Technologies (MRT) PT Raised to $6 at Benchmark on Stronger Growth, Improved Earnings Visibility
- Raymond James Starts Southern California Bancorp (BCAL) at Outperform
Create E-mail Alert Related Categories
Analyst Comments, Downgrades, UpgradesRelated Entities
Barclays, Raising PricesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
