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UPDATE: Canaccord Genuity Downgrades Bill Barrett Corporation to Hold on Uinta Basin Weakness

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UPDATE: Mizuho Upgrades Bill Barret Corporation

Canaccord Genuity downgraded Bill Barrett Corporation (NYSE: BBG) from Buy to Hold and lowered the price target from $36.00 to $19.00.

Canaccord Genuity said, "Based on actual capital spending/production performance, the capital intensity of the Uinta play is comparable to other major oil plays. Yet, Uinta crude sells at a $15-$20 NYMEX discount given its high-paraffin content and limited regional market, while Bakken/Niobrara/Permian oil sells at a $5-$10 deduct to NYMEX. Accordingly, while the other major oil plays generate a 10% unleveraged return at ~$100 NYMEX, the Uinta play requires a $115-$120 NYMEX oil price to generate the same return."

Bill Barrett Corporation closed at $18.66 on Friday.

Latest Ratings for BBG

DateFirmActionFromTo
Sep 2014Morgan StanleyMaintainsEqual-weight
Sep 2014Mizuho SecuritiesUpgradesNeutralBuy
Aug 2014Global HunterUpgradesNeutralBuy

View More Analyst Ratings for BBG
View the Latest Analyst Ratings

Posted-In: Canaccord GenuityAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

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