TD Cowen lowers PT on US energy companies

Civitas Resources

17/04/2025 12:04

** TD Cowen cuts price targets on U.S. oil producers as it continues to see the risk that crude will continue to weaken, assuming a modest demand reduction from a limited trade war scenario

** Brokerage expects operators to slow down drilling new wells in a lower priced environment and shift to sub-maintenance modes to preserve inventory

** This strategy is expected to be validated once OPEC's spare capacity is further cleared

** TD Cowen believes pragmatic move to be a shift towards gas-weighted exploration and production companies

** Adds that these companies will benefit from growing LNG and power burn demand, plus potential supply pressure from less associated gas activity

TD Cowen changes PT on the following firms:

Company
New PT
Old PT
APA Corp APA.O
$18
$28
Civitas Resources CIVI.N
$41
$65
CNX Resources CNX.N
$27
$28
ConocoPhillips COP.N
$120
$125
Devon Energy DVN.N
$35
$45
Diamondback Energy FANG.O
$175
$225
Hess Corp HES.N
$140
$157
Ovintiv OVV.N
$57
$59
SM Energy SM.N
$42
$56

 (Reporting by Pooja Menon in Bengaluru)

 ((Pooja.Menon@thomsonreuters.com;))