Carrizo Oil & Gas (NASDAQ:CRZO) appears to be fully valued at its current price, says Wells Fargo (NYSE:WFC), citing continuous challenges in the Barnett Shale.
Wells said, "It may be short term, but currently clouding our view of the company’s ability to execute are infrastructure and takeaway challenges in the Barnett, but more importantly in the Eagle Ford. At the current share price, we believe the market has priced in a fair value for the Eagle Ford and Niobrara upside and that a better risk/reward can likely be found in other names."
Wells downgraded Carrizo Oil & Gas from "Outperform" to "Market Perform." Carrizo closed Friday at $33.16, losing $1.04, or 3.04 percent.
Showing posts with label Barnett Shale. Show all posts
Showing posts with label Barnett Shale. Show all posts
Monday, January 10, 2011
Carrizo Oil & Gas (NASDAQ:CRZO) Struggling with Barnett Shale
Carrizo Oil & Gas (NASDAQ:CRZO) looks like it is priced where it should be, according to Wells Fargo (NYSE:WFC), who says they face ongoing challenges in the Barnett.
Wells said, "It may be short term, but currently clouding our view of the company’s ability to execute are infrastructure and takeaway challenges in the Barnett, but more importantly in the Eagle Ford. At the current share price, we believe the market has priced in a fair value for the Eagle Ford and Niobrara upside and that a better risk/reward can likely be found in other names."
Wells downgraded Carrizo Oil & Gas from "Outperform" to "Market Perform." Carrizo closed Friday at $33.16, losing $1.04, or 3.04 percent.
Carrizo is trading close to its 52-week high of $34.98.
Wells said, "It may be short term, but currently clouding our view of the company’s ability to execute are infrastructure and takeaway challenges in the Barnett, but more importantly in the Eagle Ford. At the current share price, we believe the market has priced in a fair value for the Eagle Ford and Niobrara upside and that a better risk/reward can likely be found in other names."
Wells downgraded Carrizo Oil & Gas from "Outperform" to "Market Perform." Carrizo closed Friday at $33.16, losing $1.04, or 3.04 percent.
Carrizo is trading close to its 52-week high of $34.98.
Friday, December 10, 2010
Anadarko (NYSE:APC), Rex Energy (Nasdaq: REXX), Carrizo (Nasdaq:CRZO), Petroleum Development (Nasdaq:PETD) and QEP (NYSE:QEP) Niobrara Results Anticipated
Anticipation is growing over the Niobrara well results from energy companies like Anadarko (NYSE:APC), Rex Energy (Nasdaq:REXX), Carrizo (Nasdaq:CRZO), Petroleum Development (Nasdaq:PETD) and QEP (NYSE:QEP), who are expected to release findings over the next several months.
Barclays (NYSE:BCS) noted, "The Niobrara could be the next big oil-shale play. The Eagleford and arguably the Bakken and Barnett are the others. Activity in the area has picked up and we expect a slew of new well results (many in untested areas) over the coming months. Chesapeake's (NYSE:CHK) much anticipated JV deal could add to the buzz.
"News flow is expected to increase soon. Anadarko Petroleum, Rex Energy, Carrizo, Petroleum Development and QEP Resources are all due to report results from horizontal wells targeting the Niobrara between now and late January/mid-February. SM has recently completed its second well in Laramie county and NBL is also drilling its first wells in Wyoming. EOG has been monitoring well performance looking for more proof of matrix support and will provide an update in early 2011. Bill Barrett (NYSE:BBG) is testing the prospectivity of its acreage in the Wind River Basin. Continental Resources (NYSE:CLR) and Marathon Oil (NYSE:MRO) should spud their first wells soon."
Anadarko closed Thursday at $69.07, up $0.43, or 0.63 percent. Rex Energy closed at $12.35, up $0.25, or 2.07 percent. Carrizon ended the session at $30.31, up $1.21, or 4.16 percent. Petroleum Development was at $38.82, up $0.04, or 0.10 percent. QEP Resources ended the day at $37.29, up $0.08, or 0.22 percent.
Barclays (NYSE:BCS) noted, "The Niobrara could be the next big oil-shale play. The Eagleford and arguably the Bakken and Barnett are the others. Activity in the area has picked up and we expect a slew of new well results (many in untested areas) over the coming months. Chesapeake's (NYSE:CHK) much anticipated JV deal could add to the buzz.
"News flow is expected to increase soon. Anadarko Petroleum, Rex Energy, Carrizo, Petroleum Development and QEP Resources are all due to report results from horizontal wells targeting the Niobrara between now and late January/mid-February. SM has recently completed its second well in Laramie county and NBL is also drilling its first wells in Wyoming. EOG has been monitoring well performance looking for more proof of matrix support and will provide an update in early 2011. Bill Barrett (NYSE:BBG) is testing the prospectivity of its acreage in the Wind River Basin. Continental Resources (NYSE:CLR) and Marathon Oil (NYSE:MRO) should spud their first wells soon."
Anadarko closed Thursday at $69.07, up $0.43, or 0.63 percent. Rex Energy closed at $12.35, up $0.25, or 2.07 percent. Carrizon ended the session at $30.31, up $1.21, or 4.16 percent. Petroleum Development was at $38.82, up $0.04, or 0.10 percent. QEP Resources ended the day at $37.29, up $0.08, or 0.22 percent.
Tuesday, October 5, 2010
Ticonderoga Maintains "Neutral" on Chesapeake (NYSE:CHK)
Chesapeake Energy (NYSE:CHK) has a "Neutral" maintained on them by Ticonderoga Securities, citing the huge volumetric production payment with Barclays (NYSE:BCS).
"Chesapeake today announced a 5-year volumetric production payment with Barclay’s Bank PLC, for $1.15B. The transaction covers 390 Bcf of proved reserves in the Barnett Shale, which equates to $2.95/Mcf. This should not be a surprise to the market, since this is the 8th VPP deal in 3 years...The short-term comparables are favorable, but the long-term outlook is bearish...We are concerned that CHK’s pursuit for unconventional oil assets will be a repeat of the factors that led to the stock’s under-performance during its natural gas land grab (high debt, rapid increase in shares, high finding cost)," said the Toconderoga analyst.
Although Chesapeake said they're going to use the capital to pay down debt related to a revolving credit facility, VPP are considered debt themselves by rating agencies.
"Chesapeake today announced a 5-year volumetric production payment with Barclay’s Bank PLC, for $1.15B. The transaction covers 390 Bcf of proved reserves in the Barnett Shale, which equates to $2.95/Mcf. This should not be a surprise to the market, since this is the 8th VPP deal in 3 years...The short-term comparables are favorable, but the long-term outlook is bearish...We are concerned that CHK’s pursuit for unconventional oil assets will be a repeat of the factors that led to the stock’s under-performance during its natural gas land grab (high debt, rapid increase in shares, high finding cost)," said the Toconderoga analyst.
Although Chesapeake said they're going to use the capital to pay down debt related to a revolving credit facility, VPP are considered debt themselves by rating agencies.
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