NEW YORK (TheStreet) -- Shares of Chesapeake Energy Corp (CHK) were slipping, down 2.53% to $14.62 in afternoon trading Monday, after analysts at Goldman Sachs downgraded the company to "neutral" from "buy" this morning.
Goldman analysts also lowered their price target to $16 from $19.
The firm cited its reduced commodity price outlook that could pressure Chesapeake's balance sheet, given increasing operating leverage to commodity prices and minimum volume contracts.
Goldman Sachs reduced its forecasts on a persistently high supply outlook.
Goldman lowered its 2016 to 2019 Brent crude price assumption to a range of between $62 to $65 a barrel, down from its previous $70 per barrel.
For 2020, the firm issued Brent crude price assumption of $55 a barrel from $70 a barrel.
The firm also raised its 2015 price assumption to $58 a barrel from $52 a barrel.
"We see global oil demand being met by U.S. shale, which is continuing to benefit from efficiency and productivity improvements, and OPEC," said Goldman analysts in a report.
Brent crude for July delivery was down 0.85% to $66.24 a barrel as of 12:16 p.m. ET today, while U.S. crude for June delivery fell 0.28% to $59.52 a barrel.
Oklahoma City, Okla.-based Chesapeake is a producer of natural gas and liquids. The company's exploration and production segment is responsible for finding and producing natural gas, oil and natural gas liquids.
The company owns interests in approximately 47,400 natural gas and oil wells with positions in the resource plays including the Eagle Ford Shale, and the Utica Shale.