NEW YORK (AP) -- Exco Resources is plowing less money into company operations next year, and that may reduce oil and natural gas production, an analyst said Friday.
Stifel Nicolaus analyst Amir Arif downgraded the Dallas petroleum company to "Hold" from "Buy" and cut his expectations for Exco production by 17 percent to 567 million cubic feet of gas equivalent per day. Arif also cut his cash flow forecast to $2.92 from $3.63 per share.
Arif made the downgrade after Exco announced it would cut capital expenditures in 2012 to $710 million from $1.01 billion in 2011.
Exco shares fell 78 cents, or 6.8 percent, to $10.65 in premarket trading.
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