This week, the Denver-based oil and gas company reported mixed results for its 2015 fourth quarter.
Bill Barrett posted adjusted earnings of 7 cents per share, beating analysts' expectations for a loss of 4 cents per share. Revenue for the period was $46.6 million, which did not meet Wall Street's projections of $82.4 million.
"The company is gaining operational momentum driven by its extended-reach lateral (XRL) program... we see good value in BBG shares," Canaccord Genuity said in an analyst note.
In response to current commodity prices, Bill Barrett has set its 2016 capex budget at $100 million to $150 million.
"This level of spending allows the company to sustain production at levels similar to 2015, pro forma for asset divestitures completed last year, while spending about 55% less capital than 2015 at the mid-point," the firm said.
Based on the uncertainty of an oil price recovery during 2016, the company is curtailing drilling activity to preserve capital. It recently released the sole rig it was operating, Canaccord Genuity noted.
Shares of Bill Barrett are spiking 16.88% to $4.50 on Thursday morning.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by multiple weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: BBG