Placing Our U.S. E&P Coverage Under Review
We anticipate lowering our fair value estimates for our U.S. E&P coverage as a result of a strained price environment and lower U.S. production.
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We are placing all our U.S. E&P companies under review following the outcome of the March 6 OPEC+ meeting and subsequent WTI price declines. Russia’s refusal to participate in further production cuts and Saudi Arabia’s steep crude discounts have ignited a price war, as the market anticipates a demand shock related to impact of COVID-19 on the global economy. We anticipate lowering our fair value estimates for our U.S. E&P coverage as a result of a strained price environment and lower U.S. production. Our midcycle price estimate remains unchanged (currently $60/bbl Brent, $55/bbl WTI, and $2.80/mcf natural gas).
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