MW: Goldman upgrades exploration and production stocks
By Steve Gelsi
NEW YORK (MarketWatch) -- Goldman Sachs on Monday placed Southwestern Energy co. (SWN 39.50, +1.80, +4.78%) on its Americas conviction buy list. "We continue to expect Southwestern to show superior growth and returns which justifies premium valuation," Goldman said in a note to clients. Analysts removed Patterson-UTI Energy Inc. (PTEN 13.52, +0.27, +2.04%) from their Americas sell list. Goldman Sachs analyst Brian Singer also upgraded the exploration and production sector to attractive from neutral. "We believe natural gas prices are near bottom," Singer said in a note to clients. Goldman Sachs remains positive on oil prices. Goldman sees natural gas prices rising as high as $6 per thousand British thermal units by the fourth quarter of this year, above the current futures price of about $5.
