Oil & Gas Stocks Higher On Goldman Upgrade, Southwestern Energy (SWN) Soars After Added to Buy-List

Southwestern Energy Co. (NYSE: SWN) and other Oil & Gas E&P stocks are on the move today after Goldman Sachs upgraded the sector from Neutral to Attractive and added Southwestern Energy to its prestigious Conviction Buy List.

Shares of Southwestern Energy are trading up 7.6% mid-day on the rating boost. The ETF Energy Select Sector SPDR (NYSE: XLE) is up 2%

In its report, Goldman Sachs said natural gas prices are near a bottom. In addition, the firm said there are still positive on oil prices, and E&P stocks reflect below $5.50/MMBtu long-term natural gas prices at $80/bbl WTI oil which the firm views as "unsustainable".

Goldman moved Southwestern Energy's rating from Neutral to Conviction Buy with a 6-month price target to $54, which suggests 42% upside from Friday's close. The firm sees Southwestern Energy delivering "superior growth" and said positive Fayetteville news or higher gas prices are positive catalysts for the shares. The firm said negatives like less attractive than peer 2010 hedges, low gas prices, limited Fayetteville Shale downspacing, potential capex decrease are "already priced in the shares."

Also in E&P. the firm continues to rate EXCO Resources (NYSE: XCO) CL-Buy and Ultra Petroleum (NYSE: UPL), Devon Energy (NYSE: DVN), Newfield Exploration (NYSE: NFX), EOG Resources (NYSE: EOG) and Questar (NYSE: STR) at Buy.

The firm made a number of price target changes in the sector. On average the firm see 28% return potential to their revised target prices.

Price Targets Raised:

• EOG Resources (NYSE: EOG) (Buy) from $119 to $120
  
• Pioneer Natural Resources Co. (NYSE: PXD) from $58 to $64
  
• Berry Petroleum (NYSE: BRY) (Neutral) from $34 to $35

Price Targets Lowered:

• Chesapeake Energy (NYSE: CHK) (Neutral) from $33 to $30
  
• Devon Energy (NYSE: DVN) (Buy) from $96 to $91
  
• EnCana Corp. (NYSE: ECA) (Neutral) from $36 to $34
  
• Cabot Oil & Gas Corporation (NYSE: COG) (Neutral) from $51 to $48
  
• EXCO Resources (NYSE: XCO) (Buy) from $26 to $25
  
• Southwestern Energy (NYSE: SWN) from $56 to $54
  
• Ultra Petroleum Corp. (NYSE: UPL) (Buy) from $67 to $61
  
• Bill Barrett Corp. (NYSE: BBG) (Sell) from $35 to $33.
  
• Plains Exploration & Production (NYSE: PXP) (Neutral) from $42 to $39
  
• Quicksilver Resources (NYSE: KWK) (Neutral) from $18 to $17
  
• SandRidge Energy (NYSE: SD) (Neutral) from $10 to $9

Market Moving News and Intelligence - 2
Weeks Free
http://www.streetinsider.com/premium_content.php

You May Also Be Interested In

• Fisker (FSR) files form 10-K, sees more job cuts, reiterates going concern doubts
• INmune Bio (INMB) Prices 572K Share Offering at $8.32/sh
• Ameriserv Financial (ASRV) Reaches Cooperation Agreement with Significant Shareholder SB Value Partners, L.P.