2 Energy Stocks Drop to 52-Week Lows: SWN, CHK
"We believe that the marginal cost curve of the U.S. gas supply is supportive of Fayetteville as a necessary part of the near-term and long-term supply picture," FBR analysts wrote in a March 23 report. "We note that our interpretation of body language around Brown Dense remains positive. The second well result is expected with 1Q12 results and the third well shortly thereafter."
Shares of Southwestern Energy hit a 52-week low on Friday of $28.15. The stock's 52-week high of $49.25 was set on July 25.
Southwestern Energy has an estimated price-to-earnings ratio for next year of 16.49 times; the average for exploration and production companies is 26.21. For comparison, Williams(WMB) has a forward P/E of 15.54.
Seventeen of the 32 analysts who cover Southwestern Energy rated it hold. Thirteen analysts gave the stock a buy rating and two rated it sell.
TheStreet Ratings gives Southwestern Energy a C+ grade and hold rating. The stock has fallen 12.12% year to date.
"Since our initiation at the beginning of the year, we have argued that CHK has multiple options to bridge the capex / cash flow funding gap and a pivotal year for the investment case that transitions to a liquids growth / break up story in 2012," Bank of America Merrill Lynch analysts wrote in a report Tuesday. "Through the transactions announced to date, we consider that CHK is well on its way to achieving the $6bn - $8bn of monetization targeted for 2012. From here, news flow shifts to the pending Mississippian Lime JV and another JV / complete sale of the Permian assets where we believe underlying asset value could surprise on the upside. Reiterate Buy."
Shares of Chesapeake Energy hit a 52-week low of $19.75 on Friday. The stock's 52-week high of $35.75 was set on Aug. 2.
Chesapeake Energy's forward P/E is 6.81; the average for exploration and production companies is 25.78. For comparison, Marathon Oil (MRO) has a lower forward P/E of 6.65.
Nineteen of the 37 analysts who cover Chesapeake Energy rated it buy. Fourteen analysts gave the stock a hold rating and four rated it sell.
TheStreet Ratings gives Chesapeake Energy a C grade and hold rating. The stock has fallen 10.9% year to date.
-- Written by Alexandra Zendrian
>To contact the writer of this article, click here: Alexandra Zendrian
>To submit a news tip, send an email to: email@example.com.
>To follow the writer on Twitter, go to Alexandra Zendrian .