BMO cuts PTs of oil and gas firms on recession fears

STEP Energy Services

13/12/2022 15:03

** Brokerage BMO cuts PTs of U.S. and Canadian oil & gas
companies against the backdrop of a recession
    ** Recession could reduce demand growth but is unlikely to
eliminate it - BMO
    ** Brent futures  LCOc1  plunge 42.6% from year high of
$139.13 in early March
    ** Brokerage cuts PT for companies including Coterra Energy
 CTRA.N , ConocoPhillips  COP.N , EQT  EQT.N , Ovintiv  OVV.N 
    ** Brokerage says energy companies will pivot to more
aggressive cash distribution strategies
    ** Brokerage expects oil investment to remain relatively
constrained over the next several years
    ** BMO lowers its Brent/WTI price assumptions for 2023 to
$95/$90 per barrel from $103/$100
    ** BMO's top picks for 2023 are Canadian Natural Resources
 CNQ.TO , Cenovus Energy  CVE.TO , Chesapeake Energy  CHK.O ,
Chevron  CVX.N , EOG Resources  EOG.N , Hess  HES.N , Matador
Resources  MTDR.N , Marathon Oil  MRO.N  and Tourmaline  TOU.TO 
    ** Brokerage picks Step Energy Services  STEP.TO  and SLB
 SLB.N  among oil field services companies
 Company                            New PT      Old PT
 Coterra Energy  CTRA.N             $30         $32
 Devon Energy  DVN.N                $75         $78
 ConocoPhillips  COP.N              $130        $145
 EOG Resources  EOG.N               $150        $160
 Occidental Petroleum  OXY.N        $72         $75
 Pioneer Natural Resources  PXD.N   $270        $275
 Ovintiv  OVV.N                     $60         $65
 Suncor Energy  SU.TO               C$54        C$55
 (Reporting by Ankit Kumar in Bengaluru)
 ((Ankit.Kumar2@thomsonreuters.com))