Brigham Minerals Inc MNRL:NYSE

Last Price$18.81NYSE Closing Price as of 6:30PM ET 12/05/19

Today's Change-0.55(2.84%)
Bid (Size)$18.63 (1)
Ask (Size)$18.89 (1)
Day Low / High$18.61 - 19.59
Volume260.4 K

Goldman Sachs Cuts Price Targets on Oil Explorers, Producers to Apply Low End of Long-Term Oil Estimates

7:07AM ET 7/08/2019 MT Newswires
Goldman Sachs cut its price targets on a number of oil explorers and producers Sunday to reflect the low end of its long-term oil expectations into its forward valuation estimates on the companies' shares.

In its note to clients disclosing the cuts, Goldman Sachs said "we believe equity investor expectations on oil may stay more cautious in the medium term."

The firm added: "While [the Organization of the Petroleum Exporting Countries] has indicated willingness this week to continue to sacrifice market share until shale matures, we believe the need for OPEC production to be flat to down in 2020 even in a healthy economic growth environment means that equity investors will likely be more willing to underwrite longer-term prices at the low end of an oil range of $50-$60/[barrel West Texas Intermediate] and $55-$65/[barrel] Brent."

As such, the firm lowered the West Texas Intermediate oil prices and its Henry Hub gas prices in its base valuation scenarios, which resulted in lower price targets across the sector.

Goldman Sachs also cautioned clients ahead of Q2 earnings reports due later this month that it expects consensus estimates for earnings and cash flow "to fall on account of commodity prices."

The stocks that received cuts to their price targets from Goldman Sachs included Apache (APA), Hess (HES), Marathon Oil (MRO), Noble Energy (NBL), Murphy Oil (MUR), Pioneer Natural Resources (PXD), Concho Resources (CXO), Diamondback Energy (FANG), Laredo Petroleum Holdings (LPI), Parsley Energy (PE), Continental Resources (CLR), California Resource (CRC), Brigham Minerals (MNRL), EOG Resources (EOG), Chesapeake Energy (CHK), Encana (ECA), Cimarex Energy (XEC), WPX Energy (WPX), Cabot Oil & Gas (COG), Southwestern Energy (SWN), Range Resources (RRC), Antero Resources (AR) and EQT Corp. (EQT).

Price: 27.18, Change: -0.10, Percent Change: -0.37