UPDATE: Topeka Capital Markets Lowers PT on Cimarex Energy on Joint Development Agreement with Chevron

In a report published Tuesday, Topeka Capital Markets analyst Gabriele Sorbara reiterated a Hold rating on Cimarex Energy XEC and lowered the price target from $80 to $74.

In the report, Topeka Capital Markets Commented, "After the market close yesterday, Cimarex Energy (XEC-$64.72: Hold) announced that it entered into a joint development agreement (JDA) across its acreage in the Culberson County, Texas with Chevron (CVX-$116.82: NR). We view the JDA as a slight positive, as it should allow XEC to more efficiently develop its acreage via optimal well placement in the 2nd Bone Spring and with longer laterals in the Wolfcamp. After spending some time re-assessing XEC’s inventory in Permian Basin and Cana Woodford and with our lower long-term NGL price assumption, we are reducing our RNAV to $83.00 per share from $89.00 per share. As a result, we are reducing our price target to $74.00 per share from $80.00 per share."

Cimarex Energy closed Monday at $64.72.