Sector Snap: Oil Producers

COLUMBUS, Ohio (AP) — Shares of oil and gas producer Southwestern Energy Co. were upgraded while shares of XTO Energy Inc. were downgraded by a Deutsche Bank analyst Friday.

The ratings changes reflect a new valuation method that measures internal cash flow growth, analyst Shannon Nome wrote in a note to clients.

Nome upgraded shares of Southwestern to "Buy" from "Hold" and raised her target price to $53 from $45. Nome downgraded XTO to "Hold" from "Buy" and lowered her share price target to $45 from $48.

Nome said in a research note that valuations of companies will take into account a new metric called that represents a company's past and future ability to grow while minimizing the need for debt. She said the measure correlates strongly with the share price over time for exploration and production companies.

Shares of Southwestern rose 60 cents to $40.89 in afternoon trading, while XTO Energy shares fell 40 cents to $39.13.