NEW YORK (TheStreet) -- Bill Barrett Corp. (BBG), an independent energy company that develops, acquires and explores for oil and natural gas resources, had its stock price target raised to $9 from $8 at Barclays which maintained its "equal weight" rating.
Despite the higher price target, the firm estimates that the company's outlook implies low to mid-single digit balance-sheet-adjusted production growth (BSAPG).
"Rising leverage ratios resulting from anticipated cash flow deficits and decreasing hedging gains remain a key consideration in shaping the capital program," Barclays analysts said.
Bill Barrett announced on Wednesday that it plans to accelerate its 2015 capital program to expand and accelerate its extended reach lateral drilling program in the Northeast Wattenberg area of the Denver Basin and is establishing an initial 2016 production growth range with capital expenditure guidance between $320 to $350 million.
Due to the timing of well completions under pad drilling, the incremental planned wells this year are not expected to have a significant impact on 2015 volumes, Barclays added.
Shares of Bill Barrett are declining 1.77% to $8.34 in afternoon trading Friday.
Separately, TheStreet Ratings team rates BILL BARRETT CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BILL BARRETT CORP (BBG) a SELL. This is driven by a few notable weaknesses, which we believe 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 we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow."