Sterne Agee CRT Downgrades Southwestern Energy (SWN) to Underperform; Unhedged Production and Overlevered Balance Sheet

November 17, 2015 6:28 AM EST
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Price: $8.38 +9.69%

Rating Summary:
    17 Buy, 27 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 6 | Down: 4 | New: 6
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Sterne Agee CRT downgraded Southwestern Energy (NYSE: SWN) from Neutral to Underperform with a price target of $8.00 on unhedged production and overlevered balance sheet.

Analyst Tim Rezvan commented, "In conjunction with our decision to more closely re-align ratings with our cautious outlook for natural gas, we downgrade SWN shares to Underperform from Neutral and establish an $8 PT, 29% below Monday's close. Low gas prices are challenging drilling economics across the company's legacy Fayetteville Shale asset, and weak spot pricing in Appalachia impacts realizations for NE Pennsylvania and West Virginia gas production, especially with the company unhedged in '16. We trim estimates through '16 to reflect continued weak NGL prices and remain near Street low on 2016E EBITDA as we envision lower capital spending and production growth next year than our peers."

For an analyst ratings summary and ratings history on Southwestern Energy click here. For more ratings news on Southwestern Energy click here.

Shares of Southwestern Energy closed at $11.66 yesterday.

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