UPDATE - UBS Downgraded Oasis Petroleum (OAS) to Neutral; Time to Take A Breather
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Price: $109.30 --0%
Rating Summary:
17 Buy, 20 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
17 Buy, 20 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - UBS downgraded Oasis Petroleum (NYSE: OAS) from Buy to Neutral. PT unchanged at $36.
UBS analyst said, "OAS has rallied 22% YTD, the best performing oil-weighted E&P within our coverage universe and outperformed the oily E&P peers by 13% over the same period. The rally is partly driven by investors shifting from gassy equities to oily equities on the back of the collapse in natural gas prices. OAS is now trading at a ~10% discount to NAV under current NYMEX strip prices, in line with our price target multiple, and is roughly at par with the resource play P/NAV average."
"Potentially negative 2012 guidance release next week & 4Q earnings in Feb: We expect OAS to disclose 2012 capex guidance of $850 MM, above consensus of $790 MM and management’s soft guidance of $750-$800 MM given on the 3Q earnings call. Meanwhile, targeted ‘12 production is expected to be 21-22 MBoed, in line with consensus but below our forecast of 23 MBoed. In addition, we expect 4Q production to come in below street expectations due to a lower number of wells completed (17 operated wells in 4Q vs. 22 in 3Q), resulting in full year production modestly below guidance of 11.0 MBoed."
To see more ratings on OAS, Click Here
UBS analyst said, "OAS has rallied 22% YTD, the best performing oil-weighted E&P within our coverage universe and outperformed the oily E&P peers by 13% over the same period. The rally is partly driven by investors shifting from gassy equities to oily equities on the back of the collapse in natural gas prices. OAS is now trading at a ~10% discount to NAV under current NYMEX strip prices, in line with our price target multiple, and is roughly at par with the resource play P/NAV average."
"Potentially negative 2012 guidance release next week & 4Q earnings in Feb: We expect OAS to disclose 2012 capex guidance of $850 MM, above consensus of $790 MM and management’s soft guidance of $750-$800 MM given on the 3Q earnings call. Meanwhile, targeted ‘12 production is expected to be 21-22 MBoed, in line with consensus but below our forecast of 23 MBoed. In addition, we expect 4Q production to come in below street expectations due to a lower number of wells completed (17 operated wells in 4Q vs. 22 in 3Q), resulting in full year production modestly below guidance of 11.0 MBoed."
To see more ratings on OAS, Click Here
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