FBR lowers Cimarex, EOG, Resolute Energy on valuation

|About: EOG Resources, Inc. (EOG)|By:, SA News Editor

Cimarex Energy (XEC -3.9%) is downgraded to Market Perform from Outperform at FBR Capital, which believes capital efficiency gains and geologic de-risking are already priced in.

"Though the story of further de-risking and capital efficiency gains... as well as continued low cost exposure to NGL/natural gas prices remain(s) intact, we are moving to the sidelines to reflect reasonable valuation," the firm writes on XEC.

FBR also lowers EOG Resources (EOG -3.8%) and Resolute Energy (REN -4.6%) for similar reasons, believing material YTD stock performance has reasonably priced in geological and operational gains achieved this year and to be achieved near term (I, II).

FBR adds Noble Energy (NBL -3%) to its top picks, replacing Newfield Exploration (NFX -3.1%); the firm sees NBL's outperformance being underpinned by substantial geological de-risking and capital efficiency gains in the Niobrara and within the rest of its global exploratory portfolio.