EOG Resources, Noble Energy can survive oil price weakness - Stifel

PDC Energy

31/03/2020 11:58

** Stifel upgrades six stocks including EOG Resources
 EOG.N  and Noble Energy  NBL.O , saying these companies can
endure an unparalleled oil market imbalance triggered by
coronavirus-driven demand shocks and a price war
    ** Brokerage upgrades Bonanza Creek Energy  BCEI.N , EOG
Resources  EOG.N , Noble Energy  NBL.O , PDC Energy  PDCE.O ,
Parsley Energy  PE.N  and Cimarex Energy  XEC.N  to "buy" from
"hold"
    ** Says all six upgraded stocks can withstand tough
environment even if price weakness persists over the next four
years - Stifel 
    ** Brokerage says saturated storage capacity and a
slower-than-expected demand recovery could cause oil prices to
slide further and force uneconomic production to be shut-in
    ** Says NBL, PE and XEC will not be required to tap their
credit facilities
    ** Stifel downgrades Denbury Resources Inc  DNR.N  and
Whiting Petroleum Corp  WLL.N  to "sell" from "hold", says both
companies will need to restructure significant amounts of debt
    ** Brokerage says liquidity issues still a significant risk
for investors, and balance sheets of some large-cap stocks like
Apache  APA.N  and Marathon Oil  MRO.N  will reflect stress 
    ** Stifel says companies that appear capable of maintaining
a modest 2021 oil production decline while spending within cash
flow include APA, Concho Resources  CXO.N  and Diamondback
 FANG.O 

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext:
2776; Reuters Messaging:
arundhati.sarkar.thomsonreuters.com@reuters.net))