Cowen says weak gas prices through 2020 to affect integrated oil and gas cos

Total Energy Services

20/08/2019 16:45

** Cowen cuts PT on some integrated oil and gas cos, citing
lower gas price outlook
    ** Reduces PT on U.S.-listed shares of Royal Dutch Shell Plc
 RDSa.N  and Total Energy Services Inc  TOT.N ; says gas price
weakness to persist at least through 2020
    ** Cuts PT on RDSa to $69 from $75; says co's higher
exposure to gas and LNG pressuring share price performance in
the near term
    ** Cuts PT on TOT to $64 from $70, but says Chevron Corp
 CVX.N  remains its 'top pick'; maintains "outperform" rating
for both
    ** "Continue to favor CVX and TOT in the group for their
free cash flow, shareholder returns, and lower gearing level
outlook relative to regional peers" - brokerage
    ** Says international gas prices to remain weak through
2020, lowering long-term gas price assumption from $8 per
thousand cubic feet (mcf) to $7/mcf 

 (Reporting by Arunima Kumar in Bengaluru)
 ((RM: arunima.kumar.thomsonreuters.com@reuters.net))