Mon, Jul. 18, 3:58 PM
- Pioneer Natural Resources (PXD +0.1%), EP Energy (EPE +0.9%), Carrizo Oil & Gas (CRZO +2.8%), Sanchez Energy (SN +2.5%) and Synergy Resources (SYRG -0.1%) are all upgraded to Buy at KLR Group in advance of Q2 earnings reports.
- At the same time, the firm downgrades Devon Energy (DVN -0.4%), Consol Energy (CNX -1.3%) and Continental Resources (CLR +0.4%) to Accumulate from Buy on valuation given their substantial share price appreciation over the past four months.
- KLR expects the U.S. E&P industry's cost intensity to decline another 10% this year as capital spending is rationalized another 45%, but it anticipates spending ultimately will increase ~70% "assuming a substantive recovery in commodity prices."
- The firm's new stock price targets are $218 for PXD, $6.50 for EPE, $49 for CRZO, $9 for SN, $9 for SYRG, $44 for DVN, $20 for CNX and $54 for CLR.
Thu, Jun. 30, 2:01 PM
Thu, Jun. 30, 12:46 PM
Mon, May 16, 9:19 AM
Thu, May 5, 12:50 PM
Thu, May 5, 9:12 AM
- Gainers: SYNC +143%. LGCY +31%. AAWW +27%. EPE +21%. FCEL +19%. WTW +15%. DNR +14%. ZNGA +14%. CHK +13%. BCEI +12%. UNXL +12%. ARRS +10%. CRC +10%. CLMT +9%. ORIG +9%. QRVO +8%. GSV +8%. HMY +8%. VNR +7%. MEET +7%. SDRL 7%. CLR 6%. SGYP 6%. OAS 5%. REGN 5%. BABA 5%. AUY 5%.
- Losers: PTX -37%. FRSH -27%. SQNM -19%. FIT -13%. EBIO -11%. LB -10%. WFT -9%. SEAS -8%. ABC -8%. CTL -5%.
Wed, May 4, 4:31 PM
Wed, Apr. 27, 12:46 PM
Fri, Apr. 15, 12:29 PM
- J.P. Morgan analysts revises ratings on several large-cap E&P companies following the six-week 71% rally of E&P equities in its coverage
- The firm upgrades Anadarko Petroleum (APC +0.3%) to Overweight from Neutral based on an attractive relative valuation, a resilient production profile and improved balance sheet, and upgrades Antero Resources (AR +0.9%) to Neutral from Underweight on strong PDP reserve growth and expectations of continued strong operating momentum through 2017.
- Meanwhile, JPM downgrades Southwestern Energy (SWN -0.4%) to Underweight from Neutral and EP Energy (EPE +0.4%) to Neutral from Overweight on valuation metrics.
- The firm also thinks further successful delineation of the emerging STACK play in Oklahoma could support a relative re-rating in Continental Resources (CLR -0.1%) and Devon Energy (DVN -0.3%) shares, as drilling returns in the oil window are among the highest in U.S.
- JPM's top natural gas pick remains EQT Corp. (EQT -0.4%) given differentiated growth, a strong balance sheet, noteworthy catalysts and attractive valuation.
- Now read Why Anadarko Petroleum is the best bet in a challenging oil market
Wed, Mar. 30, 5:39 PM
Tue, Mar. 22, 3:41 PM
- EP Energy (EPE +5.3) recoups much of yesterday's sharp loss, but BofA Merrill downgrades shares to Underperform from Neutral with a $3 price target, cut from $3.50, citing remaining balance sheet headwinds.
- BofA says EPE's $420M sale of its Haynesville shale assets represents the company's first step towards cleaning up its $4.8B in debt, but leverage could continue to be a headwind into 2017 when most of the company’s hedges roll off, the firm says.
- BofA says it is difficult to “envision a scenario post 2016 where EPE can live within cash flow while moderating its production declines, barring a significant recovery in commodity prices,” expecting production to fall by 23% in 2016, including the Haynesville sale, and down another 11% in 2017.
Tue, Mar. 22, 9:20 AM
Mon, Mar. 21, 6:05 PM
- EP Energy (NYSE:EPE) announced earlier that it agreed to sell substantially all of its assets located in the Haynesville and Bossier shales to Covey Park Gas for $420M in cash.
- The sale moves EPE toward better financial footing but with leverage still elevated as 2017 hedges roll off, more work will be needed to address the balance sheet, says Wells Fargo analyst Gordon Douthat.
- Topeka Capital's Gabriele Sorbara says that with the loss of its Haynesville reserves, EPE may see its revolver revised downward, making its leverage nearly the same as prior to the sale.
- EPE shares fell 8.6% in today's trade.
Wed, Mar. 16, 12:50 PM
Fri, Mar. 11, 3:53 PM
- EP Energy (EPE -3.1%) is a rare energy loser today as Goldman Sachs downgrades shares to Sell from Neutral with a $4.50 price target, based on a lack of differentiated growth relative to other oil levered companies and a weakening balance sheet, resulting from attractive hedges rolling off at year-end 2016.
- But Goldman, while it forecasts sharply lower U.S. oil prices over the coming weeks, also sees "a path emerging" for a recovery to $55-$60/bbl in 2017 to restart the U.S. shale machine, and raises its coverage outlook for the E&P sector to Attractive from Neutral while recommending investment in "secure shale productivity winners and the next rung stocks.”
- The firm upgrades Carrizo Oil & Gas (CRZO +10.4%) to Buy from Neutral with a $37 price target, expecting CRZO to exit 2017 at a manageable 3.6x net debt/EBITDA with the potential for non-core asset sales to aid in further deleveraging.
- RSP Permian (RSPP +7.9%) also is raised to Buy from Neutral, with a $34 target, as Goldman expects a re-acceleration of drilling activity in 2017 to drive improvement in the company’s leverage metrics and easing investor concerns.
- Oasis Petroleum (OAS +4.4%) is upped to Neutral from Sell with a $7.25 price target, as the firm believes that a cyclical recovery in oil prices would ease investor concerns over the company’s leverage.
- Earlier: Anadarko Petroleum upgraded to Buy at Goldman Sachs
Tue, Mar. 8, 12:25 PM
- Bonanza Creek Energy (BCEI -24.5%) and EP Energy (EPE -15.9%) are selling off after both companies are downgraded to Neutral from Outperform at Credit Suisse, which sees "a bleaker reality [setting] in for some of the more challenged companies as production declines become harder to fight, hedges roll off and balance sheets deteriorate exponentially."
- Credit Suisse sees challenges for BCEI following the termination of the Rocky Mountain Infrastructure agreement, resulting in a stretched balance sheet and ability to accrete NAV in the current environment; the firm cuts its BCEI price target to $2 from $4.
- The firm sees risks to EPE's balance sheet as well as its long-term cash flows once hedges roll off in 2017; EPE's price target is maintained at $4.
EP Energy Corp. operates as an independent exploration and production company. It engages in the acquisition and development of unconventional onshore oil and natural gas properties in the United States. The company's exploration properties and assets include the Eagle Ford Shale (South Texas),... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
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