Analyst Sees Volatile Future for North American Gas Prices, Upgrades Most Impacted Stock
Portfolio Pulse from Lekha Gupta
Scotiabank analyst Cameron Bean upgraded EQT Corporation to Sector Outperform and raised its price target to $52, citing the expected benefits from its acquisition of Equitrans Midstream Corporation. Bean downgraded Range Resources Corporation and Southwestern Energy Company to Sector Perform, adjusting their price targets due to various factors including production profiles and mergers. The analysis reflects expectations of volatile North American gas prices, influenced by U.S. production volumes and new LNG export facilities.
April 11, 2024 | 5:53 pm
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NEGATIVE IMPACT
Range Resources Corporation was downgraded to Sector Perform with a new price target of $45, reflecting adjustments based on production profiles and market conditions.
The downgrade of Range Resources Corporation to Sector Perform with an adjusted price target is based on the analyst's view of its production profile and the broader market conditions affecting the energy sector.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Southwestern Energy Company was downgraded to Sector Perform with a price target of $9.5, influenced by its production profile and the upcoming merger with Chesapeake Energy Corporation.
The downgrade and new price target for Southwestern Energy Company reflect the analyst's expectations regarding its sustaining production profile and the strategic implications of its merger with Chesapeake Energy Corporation.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Chesapeake Energy Corporation's merger with Southwestern Energy Company is expected to close in mid-Q4/24, potentially adding significant international natural gas price exposure.
The merger between Chesapeake Energy Corporation and Southwestern Energy Company is seen as a strategic move that could enhance the combined company's exposure to international natural gas prices, impacting its market position.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 60
POSITIVE IMPACT
EQT Corporation was upgraded to Sector Outperform with a price target of $52, reflecting positive expectations from its acquisition of Equitrans Midstream Corporation.
The upgrade and raised price target for EQT Corporation are based on the anticipated benefits from its acquisition of Equitrans Midstream Corporation, expected to improve cost structure and operational flexibility.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Equitrans Midstream Corporation's acquisition by EQT is expected to close in mid-Q4/24, seen as beneficial for EQT.
The acquisition of Equitrans Midstream Corporation by EQT is anticipated to provide material cost structure improvements and operational benefits, positively impacting EQT's future performance.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70