In a new report, Susquehanna analyst Biju Perincheril discusses the impact that $30 oil has had on oil & gas E&P stocks and U.S. crude oil production in 2016 and beyond. Perincheril cut Susquehanna’s oil production forecast, but the firm remains positive on several beaten-down E&P stocks.

“The important takeaway from this earnings season was that initial 2016 outlooks from E+Ps suggest U.S. oil production decline could gather steam later this year as operators adjust to $30 oil,” Perincheril explained.

For public independents, Perincheril believes this adjusted outlook will translate to 10 percent oil production declines this year. Assuming companies stick to their capex projections, the firm believes that private companies will dial back production even further this year, resulting in an overall decline of 0.8-1.0 MMbls/d in total U.S. oil production.

Susquehanna has raised its price targets for Chesapeake Energy Corporation CHK 0.43%, Oasis Petroleum Inc. OAS 5.62%, SM Energy Co SM 4.13% and Range Resources Corp.RRC 1.62%.

Susquehanna now has…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!