- Chesapeake Granite Trust (CHKR -8.2%) is downgraded to Sell from Neutral with an $11 price target, down from $13, at Goldman Sachs, reflecting expectations for weak well results and lower rig count at its sole production area in Washita County, Wash., driving sharply lower volumes and cash distributions to unitholders in coming quarters and years.
- Goldman also expects a less favorable production mix over time, with more low-margin natural gas and less high-margin natural gas liquid and crude oil production.
- The firm sees cash flows only slightly above the subordination threshold, leaving limited room for error.
Chesapeake Granite cut to Sell at Goldman
Oct 30 2013, 15:53 ET