Citigroup cuts PTs on US oil and gas firms

Southwestern Energy Co

28/08/2024 13:18

** Brokerage Citigroup cuts price targets on several U.S.
oil and gas producers
    ** Says drilling efficiency has been bigger surprise this
year in earnings season, along with falling service costs;
capital efficiency is improving across E&P sector
    ** Natural gas operators have seen their average break-evens
tick up slightly due to drilled-but-uncompleted wells (DUCs),
deferred turn-in-lines (TILs), operational throttling, active
curtailments, Citi says
    ** "(DUCs and deferred TILs) serve to position the operators
well for the anticipated robust demand pull in 2025 and portend
a lower relative capital spend to meet that future growth," Citi
says 
    Here are the PT cuts made by the brokerage
 Company           New PT      Old PT
 APA Corp  APA.O   $32         $33
 Chesapeake        $90         $96
 Energy  CHK.O                 
 Coterra Energy    $30         $31
  CTRA.N                       
 Devon Energy      $55         $58
  DVN.N                        
 Occidental        $62         $65
 Petroleum                     
  OXY.N                        
 Range Resources   $33         $35
  RRC.N                        
 Southwestern      $7.80       $8.33
 Energy  SWN.N                 
 
 (Reporting by Pooja Menon and Vallari Srivastava in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))