Market Overview

UPDATE: Goldman Sachs Downgrades Chesapeake Granite Wash Trust on Unit Price Downside


In a report published Wednesday, Goldman Sachs analyst Theodore Durbin downgraded the rating on Chesapeake Granite Wash Trust (NYSE: CHKR) from Neutral to Sell, and lowered the price target from $13.00 to $11.00.

In the report, Goldman Sachs noted, “We downgrade Chesapeake Granite Wash Trust (CHKR) to Sell, with 21% unit price downside to our $11, 12-month target price (vs. 14% average upside for our coverage). We expect weak well results and a reduced rig count in its sole area of production, Washita County in the Colony Granite Wash, will drive sharply lower volumes and cash distributions to unitholders in coming quarters and years. We also expect a less favorable production mix over time, with more low-margin natural gas and less high-margin NGL and crude oil production. We expect cash flows only slightly above the subordination threshold, leaving limited room for error.”

Chesapeake Granite Wash Trust closed on Tuesday at $14.00.

Latest Ratings for CHKR

Oct 2013Goldman SachsDowngradesNeutralSell
Aug 2013Raymond JamesDowngradesMarket PerformUnderperform

View More Analyst Ratings for CHKR
View the Latest Analyst Ratings


Related Articles (CHKR)

View Comments and Join the Discussion!

Posted-In: Goldman Sachs Theodore DurbinAnalyst Color Downgrades Analyst Ratings

Latest Ratings

EMNMorgan StanleyMaintains80.0
DBVTMorgan StanleyMaintains2.0
CYBRMorgan StanleyMaintains135.0
CNOMorgan StanleyMaintains16.0
CDKMorgan StanleyMaintains57.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at