UPDATE: Wunderlich Securities Reiterates On Clayton Williams Energy On Updated Guidance
In a report published Tuesday, Wunderlich Securities analyst Irene O. Haas reiterated a Buy rating on Clayton Williams Energy (NYSE: CWEI), but lowered the price target from $162.00 to $144.00.
In the report, Wunderlich Securities noted, “Clayton Williams Energy (CWEI) had a miss last quarter leading the stock to take a 6% hit. Production was lighter than expected and this will continue into the second half of 2014 according to company guidance provided on August 4, 2014. While the small production dial down has limited impact, the increase in spending would mean more borrowing in 2014 and 2015. Capex for 2014 is expected at $440 million and will increase to ~$525 million in 2015. We now expect CWEI to end 2015 with debt of $837 million versus our prior estimate of ~$654 million. Since higher debt negatively impacts our NAV estimate, we are lowering our NAV and price target from $162 to $144. We still like CWEI's inventory in the Permian and we reiterate our Buy rating on this Permian first mover.”
Clayton Williams Energy closed on Monday at $111.81.
Latest Ratings for CWEI
|Jan 2015||SunTrust Robinson Humphrey||Downgrades||Buy||Neutral|
|Dec 2014||Roth Capital||Initiates Coverage on||Buy|
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