- Southwestern Energy (SWN -6.5%) is downgraded to Underperform from Neutral with an $8 price target at Sterne Agee CRT, which cites unhedged production and an overlevered balance sheet.
- Analyst Tim Rezvan says low gas prices are challenging drilling economics across SWN's legacy Fayetteville Shale asset, and weak spot pricing in Appalachia impacts realizations for Pennsylvania and West Virginia gas production, especially with the company unhedged in 2016.
- The firm trims SWN earnings estimates through 2016 to reflect continued weak prices for natural gas liquids and remain near the Street low on estimated 2016 EBITDA, as it envisions lower capital spending and production growth next year.