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 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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorDowngradesAnalyst RatingsGoldman SachsTheodore Durbin
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!