Jefferies analyst Mark Lear downgraded Centennial Resource Development (CDEV), Callon Petroleum (CPE), Carrizo Oil & Gas (CRZO), Gulfport Energy (GPOR) and Range Resources (RRC) to Hold from Buy to reflect his firm's reduced oil and natural gas price forecasts. The analyst anticipates "another messy quarter" across the Exploration & Production space, driven by "weak" NGL and Waha natural gas pricing. "Once again, E&Ps have been left in the dust by crude, and it feels to us the market doesn't want, or more importantly need, the crude supply that the US onshore can deliver," Lear tells investors in a research note. He thinks EOG Resources (EOG), Diamondback Energy (FANG), Parsley Energy (PE), and Pioneer Natural (PXD) are set up well into the quarter.

Truist raised the firm's price target on Diamondback Energy to $250 from $248 and keeps a Buy rating on the shares. The firm sees the company's Q1 production as sequentially flat, while its moderately sequentially lower capital spend will return slightly lower free cash flows given the decline in quarterly commodity prices, the analyst tells investors in a research note. Truist adds however that Diamondback Energy is the only "oily" E&P in its coverage universe with higher 2021-2023 cumulative average production that will only improve as Endeavor fills strategic whitespace with a potential near-term close.

Susquehanna analyst Biju Perincheril raised the firm's price target on Range Resources to $36 from $34 and keeps a Neutral rating on the shares. The firm updated its estimates for their E&P sector by lowereing natual gas assumptions and maintaining oil prices. For 2024, they expect companies will continue their maintenance capital programs, while focusing on driving improving well productivity. Susquehanna also expects M&A activity to continue as companies look to shore up inventory positions.