Barclays on E&P Monthly: October 2011
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Price: $131.41 +0.29%
Rating Summary:
29 Buy, 25 Hold, 1 Sell
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Today's Overall Ratings:
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Rating Summary:
29 Buy, 25 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Barclays on E&P Monthly: October 2011
Barclays analyst, Thomas R. Driscoll, said, "The E&P universe recovered most of the losses from the month before as oil prices rebounded. The EPX Index increased 23% in October compared with the S&P 500, which was up 11% over the same period. The WTI calendar year 2012 curve increased $11/bbl to $91, while the Henry Hub curve dropped $0.54 to $4.05/MMbtu...Gas supply/demand fundamentals remain bearish."
"On the large cap side, our top picks are EOG Resources (NYSE: EOG), Noble Energy (NYSE: NBL) and Devon Energy (NYSE: DVN). We believe the market continues to under-appreciate what would likely be very strong cash flow growth at EOG (through oil ramp up) over the next 12-18 months. NBL appears set to deliver average annual debt-adjusted growth (production, reserves, cash flow) of 18% over the next five years, materially outperforming the group and its closest peers."
"On the mid cap side our top picks are SM Energy (NYSE: SM) and Bill Barrett (NYSE: BBG). We believe SM is well positioned to deliver peer-leading production and reserve growth over the next several years from development of the Eagle Ford and Bakken Shales. We expect steady production growth through 2012 with the addition of compression capacity at West Tavaputs and continued delineation of Blacktail Ridge. Success in other oil exploration prospects could also represent meaningful catalysts for the shares."
Barclays analyst, Thomas R. Driscoll, said, "The E&P universe recovered most of the losses from the month before as oil prices rebounded. The EPX Index increased 23% in October compared with the S&P 500, which was up 11% over the same period. The WTI calendar year 2012 curve increased $11/bbl to $91, while the Henry Hub curve dropped $0.54 to $4.05/MMbtu...Gas supply/demand fundamentals remain bearish."
"On the large cap side, our top picks are EOG Resources (NYSE: EOG), Noble Energy (NYSE: NBL) and Devon Energy (NYSE: DVN). We believe the market continues to under-appreciate what would likely be very strong cash flow growth at EOG (through oil ramp up) over the next 12-18 months. NBL appears set to deliver average annual debt-adjusted growth (production, reserves, cash flow) of 18% over the next five years, materially outperforming the group and its closest peers."
"On the mid cap side our top picks are SM Energy (NYSE: SM) and Bill Barrett (NYSE: BBG). We believe SM is well positioned to deliver peer-leading production and reserve growth over the next several years from development of the Eagle Ford and Bakken Shales. We expect steady production growth through 2012 with the addition of compression capacity at West Tavaputs and continued delineation of Blacktail Ridge. Success in other oil exploration prospects could also represent meaningful catalysts for the shares."
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