Imperial Capital Starts WPX Energy (WPX) at Outperform

Imperial Capital initiates coverage on WPX Energy (NYSE: WPX) with a Outperform rating and a price target of $17.00, saying it is extremely well hedged on natural gas for 2015 and 2016.

Analyst Bob Christensen commented, "In our view, WPX is a lower-risk way to gain significant exposure to our Western U.S. natural gas thesis. Approximately 72% of its production is natural gas, 18% is crude oil, and 9% is natural gas liquids (NGLs). WPX is the largest natural gas producer in Colorado, producing about a third of that state’s natural gas. WPX’s natural gas is largely produced out of the Piceance Basin of Western Colorado. It also produces a lot of natural gas and crude oil from the San Juan Basin of New Mexico."

The analyst added, "Our positive view on WPX is consistent with our Western natural gas thesis, where we have a favorable outlook for Rocky Mountain natural gas producers and believe supply-demand dynamics will be positive for the Western U.S. region over the next five years. WPX has established a top tier crude oil play in the Bakken in the Williston Basin of North Dakota. WPX and its predecessor companies have over three decades of experience and expertise in exploration and production in the U.S. Rockies Mountain region."

For an analyst ratings summary and ratings history on WPX Energy click here. For more ratings news on WPX Energy click here.

Shares of WPX Energy closed at $11.02 yesterday.

You May Also Be Interested In

• JPMorgan Starts TIME dotCom Berhad (TDC:MK) at Overweight
• Bernstein SocGen Group Starts Quantinuum Inc (QNT) at Outperform
• MakeMyTrip (MMYT) PT Raised to $84 at Goldman Sachs