Clayton Williams -24% following big Q4 loss, Wunderlich downgrade

|About: Clayton Williams Energy, Inc. (CWEI)|By:, SA News Editor

Clayton Williams Energy (CWEI -23.9%) is downgraded to Sell from Buy with a $6 price target, slashed from $66, at Wunderlich, which says it now must evaluate the company as a going concern rather than a takeover candidate.

The firm notes CWEI announced earlier this week that it took a $350M term loan from Ares Management and reduced the borrowing base on its credit facility to $100M, indicating that the company is buying time and hoping crude prices will strengthen enough to enable it to reconfigure its capital structure.

CWEI reported a larger than expected Q4 loss, a 57% Y/Y revenue decline, and a 16% Y/Y drop in oil, gas and natural gas liquids production per boe.

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