UPDATE: BMO Capital Markets Downgrades Bill Barrett Corporation to Underperform on Structural Headwinds
BMO Capital Markets downgraded Bill Barrett Corporation (NYSE: BBG) from Market Perform to Underperform and lowered the price target from $21.00 to $17.00.
BMO Capital Markets said, "We believe the drivers behind that poor relative price performance are still present: the reality of the company's operations increasing in capital intensity, potentially resulting in lowered growth expectations or increased outspending of cash flow or increased leverage, or all the above. Not desired outcomes. The challenge is rooted in the assets. The company is putting its money on two oil-weighted plays, the Niobrara in the DJ Basin and “Uteland Butte” in the Uinta Basin. Our review of production history from wells targeting the Niobrara shows performance below our applied type curve."
Bill Barrett Corporation closed at $18.00 on Friday.
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