Wells Fargo cuts ratings on drillers in Colorado's DJ Basin

theflyonthewall.com

In a note to investors earlier today Wells Fargo downgraded fossil fuel drilling companies Bill Barrett Group (BBG), PDC Energy (PDCE), and Noble Energy (NBL) as the firm expects the companies to be hurt by growth constraints in Colorado's Denver-Julesburg, or DJ, Basin. Specifically, Wells, which downgraded all three stocks to Market Perform from Outperform, believes that the three drillers will be hurt by constraints on companies that provide other services related to the procurement and sale of natural gas liquids in the area. These constraints could negatively impact the drillers' ability to grow over the next 12-15 months, Wells Fargo wrote. In mid-morning trading, Bill Barrett lost 0.64% to $24.72, PDC fell 1.16% to $33.20, and Noble Energy added 0.27% to $94.36.

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