Siebert Williams Shank raises price targets on E&Ps on positive Q1 prospects

PDC Energy

16/04/2021 12:45

** Siebert Williams Shank expects positive Q1 earnings for
oil and gas exploration and production (E&P) companies
    ** Brokerage says with Q1 results closely tracking Q4, it
does not expect any material changes to previously issued 
forecast by the companies
    ** Says severe winter weather impact during Q1 will drive
sequential production declines overall and higher per unit
costs, but this is more than offset by significantly stronger
realized pricing across all products
    ** "Investors will look past minor quarterly production
misses to focus on free cash flow, debt reductions  and
shareholder returns – the key metrics contributing to
outperformance which have significantly improved over the past
few qtrs," Gabriele Sorbara of Siebert Williams Shank says
    ** Brokerage says with the expectation of widespread cash
flow and EBITDA beat, it is generally positive into Q1 earnings
results with top picks and highest conviction for relative
outperformance in Cimarex Energy  XEC.N , Devon Energy  DVN.N 
and PDC Energy  PDCE.O 
    ** Brokerage also raises PTs on the some E&Ps under its
coverage    
 Company                        To          From
 Cimarex Energy  XEC.N          $82.00      $79.00
 Continental Resources  CLR.N   $28.00      $23.00
 Devon Energy  DVN.N            $30.00      $29.00
 Diamondback Energy  FANG.O     $91.00      $89.00
 Laredo Petroleum  LPI.N        $40.00      $34.00
 Matador Resources  MTDR.N      $25.00      $22.00
 PDC Energy  PDCE.O             $47.00      $44.00
 Range Resources  RRC.N         $11.00      $10.00
 SM Energy  SM.N                $22.00      $18.00
 

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com))