| Why Deutsche Bank Is Selling Consol Energy | |
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The share price of CONSOL Energy Inc. (NYSE: CNX) has declined 77.334 percent year-to-date, touching a low of $6.66 on October 30.
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Deutsche Bank’s Jorge Beristain has downgraded the rating on the company from Hold to Sell, while lowering the price target from $13 to $6.
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Beristain believes that there could be further downside risk to the stock, given that the gas outlook could be weaker than expected, as well as CONSOL Energy’s “stressed” balance sheet.
Analyst Jorge Beristain mentioned that the company had highlighted while reporting its 3Q15 earnings that its near-term focus would remain on growing its E&P production, along with controlling expenses and “pragmatically managing balance sheet through asset monetization program.”
Management has guided to being free cash flow neutral in 4Q15 and becoming free cash flow positive in 2016, regardless of any potential dropdowns or asset sales.
While the first dry Utica Gaut 4I well in Westmoreland County has been completed in 2Q15, the company also stated that its well flow tests were progressing, “with Initial Production rate of 61.4MMcf/d.”
The GH9 well is scheduled for hydraulic fracturing in 4Q15, “and expected to be turned on-line in 1Q16,” the Deutsche Bank report said.
CONSOL Energy has also secured multi-year commitments from key power plants in the Southeast and Midwest regions.
The 2016-17 EBITDA estimates have been lowered to reflect Deutsche Bank’s lowered natural gas prices and lower coal realizations, “partially offset by higher natgas volumes and cost improvements.”
Latest Ratings for CNX
Date | Firm | Action | From | To |
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Nov 2015 | Deutsche Bank | Downgrades | Hold | Sell | Nov 2015 | Barclays | Maintains | | Equal-weight | Oct 2015 | Susquehanna | Initiates Coverage on | | Neutral |
View More Analyst Ratings for CNX
View the Latest Analyst Ratings
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Consol Energy Inc.
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PRODUCTEUR |
CODE : CNX |
ISIN : US20854P1093 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Consol Energy est une société de production minière basée aux Etats-Unis D'Amerique. Consol Energy est productrice de charbon en USA, et détient divers projets d'exploration en USA. Son principal projet en production est BUCHANAN en USA. Consol Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 5,4 milliards US$ (5,0 milliards €). La valeur de son action a atteint son plus haut niveau récent le 06 juin 2008 à 99,79 US$, et son plus bas niveau récent le 26 avril 2019 à 10,00 US$. Consol Energy possède 223 758 284 actions en circulation. |