Global Hunter Securities Downgrades PDC Energy (PDCE) to Accumulate
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Price: $73.85 --0%
Rating Summary:
23 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Global Hunter Securities downgraded PDC Energy (NASDAQ: PDCE) from Buy to Accumulate with a price target of $37.00 (from $35.00), noting DJ capacity drags on production.
The firm comments, "With a third rig coming online in the HZ Wattenberg a little later than we anticipated and pipeline pressures expected to recur when the weather warms up next year, PDCE's 2013 production guidance (55-57 Bcfe), which was released Tuesday, was below our previous 61 Bcfe expectation. Capex guidance of $324MM (plus $48MM for PDC Mountaineer, paid from the JV cash flow) was in line. With first results from the Onega Commissioners horizontal in the Utica encouraging (given the shorter lateral vs. peers), we are raising our Utica valuation to a blended $6,200/acre. Net/net, we see our NAV estimate up a bit and are raising our price target to $37 (from $35). However, given the limited upside potential from the current price and the slow production build until new takeaway capacity reaches the DJ Basin, we're moving our rating to Accumulate from Buy."
For an analyst ratings summary and ratings history on PDC Energy click here. For more ratings news on PDC Energy click here.
Shares of PDC Energy closed at $33.38 yesterday.
The firm comments, "With a third rig coming online in the HZ Wattenberg a little later than we anticipated and pipeline pressures expected to recur when the weather warms up next year, PDCE's 2013 production guidance (55-57 Bcfe), which was released Tuesday, was below our previous 61 Bcfe expectation. Capex guidance of $324MM (plus $48MM for PDC Mountaineer, paid from the JV cash flow) was in line. With first results from the Onega Commissioners horizontal in the Utica encouraging (given the shorter lateral vs. peers), we are raising our Utica valuation to a blended $6,200/acre. Net/net, we see our NAV estimate up a bit and are raising our price target to $37 (from $35). However, given the limited upside potential from the current price and the slow production build until new takeaway capacity reaches the DJ Basin, we're moving our rating to Accumulate from Buy."
For an analyst ratings summary and ratings history on PDC Energy click here. For more ratings news on PDC Energy click here.
Shares of PDC Energy closed at $33.38 yesterday.
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