Barclays on U.S. Oil & Gas: E&P (Mid-Cap): Upgrades DNR, Downgrades KWK
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Price: $0.24 --0%
Rating Summary:
2 Buy, 14 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
2 Buy, 14 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Barclays on U.S. Oil & Gas: E&P (Mid-Cap): Revising Estimates
Barclays analyst says, "Updated NYMEX price deck - We recently raised our NYMEX oil reference prices to $105/bbl from $93/bbl in 2011 and $105/bbl from $95/bbl in 2012. We also lowered our 2011 NYMEX natural gas price to $4.15/MMBtu from $4.25/MMBtu. Our 2012 NYMEX gas price is unchanged at $4.50/MMBtu."
"Upgrading Denbury Resources (NYSE: DNR) to OW - We believe DNR's focus on tertiary oil recovery and development of the Bakken Shale could support strong oil production and reserve growth over the next decade. We believe the company's growth visibility and leverage to robust oil prices justifies a premium share valuation. Shares currently trade at 6.8x our EV / 2012E PICF compared with an oil-levered peer average of 6.9x."
"Downgrading Quicksilver Resources (NYSE: KWK) to EW - Shares currently trade at 5.5x our EV / 2012E PICF, which is in-line with its gas-levered peer average of 5.5x. We believe share performance will remain tied to exploration results in the Horn River Basin and potential future success in the Niobrara and north-central Montana Bakken plays."
Barclays analyst says, "Updated NYMEX price deck - We recently raised our NYMEX oil reference prices to $105/bbl from $93/bbl in 2011 and $105/bbl from $95/bbl in 2012. We also lowered our 2011 NYMEX natural gas price to $4.15/MMBtu from $4.25/MMBtu. Our 2012 NYMEX gas price is unchanged at $4.50/MMBtu."
"Upgrading Denbury Resources (NYSE: DNR) to OW - We believe DNR's focus on tertiary oil recovery and development of the Bakken Shale could support strong oil production and reserve growth over the next decade. We believe the company's growth visibility and leverage to robust oil prices justifies a premium share valuation. Shares currently trade at 6.8x our EV / 2012E PICF compared with an oil-levered peer average of 6.9x."
"Downgrading Quicksilver Resources (NYSE: KWK) to EW - Shares currently trade at 5.5x our EV / 2012E PICF, which is in-line with its gas-levered peer average of 5.5x. We believe share performance will remain tied to exploration results in the Horn River Basin and potential future success in the Niobrara and north-central Montana Bakken plays."
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