Extraction Oil and Gas (XOG -10.2%) slumps to a 52-week low as Imperial Capital downgrades shares to Underperform from Outperform with a $2 price target, slashed from $7, saying the company's business model is "fundamentally more risky" than other DJ Basin peers.
Imperial analyst Irene Haas expects Q3 production will be flat due to unplanned outages on the Western Gas system and a two-month delay in the startup of the Rimrock system.
With the recent departure of its CFO, Haas also is concerned that XOG "might not be equipped to weather additional commodity prices downdraft or operational upsets, planned or unplanned."
Stephens analyst Gail Nicholson yesterday cut XOG to Equal Weight from Overweight with a $4 price target, driven by the Q3 production miss and increased cautiousness around oil.
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