Canaccord Slashes Price Target for Gastar Exploration Inc Following 4Q:14 Results

Canaccord Genuity analyst Karl Chalabala came out today with a research note on Gastar Exploration Inc (NYSE MKT:GST), reducing the price target to $4.00 (from $5.00), while reiterating a Buy rating on the stock. The decreased price target comes in response to the company’s fourth-quarter miss as EPS of $0.02 were below the Street’s $0.06 forecast.

Chalabala noted, “GST reported adjusted earnings per share of $.02 and EBITDA of $25.9 million for the fourth quarter, slightly below expectations. The miss can be partially attributed to lease operating expenses, which were surprisingly higher than fourth quarter guidance ($5.83/boe versus guidance of $4.50-$5.00). The miss was due to the impact of workover costs related to the stimulation of four wells in GST’s WEHLU acreage. LOE is expected to be $5.00 – $5.60 per boe for 2015.”

Bottom line, “Gastar’s liquidity position leaves the company well-positioned through 2016, when we believe a stronger commodity environment should enable re-acceleration in core multistacked Midcon and Appalachian acreage.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Karl Chalabala has a total average return of -14.1% and a 7.1% success rate. Chalabala has a -11.7% average return when recommending GST, and is ranked #3362 out of 3516 analysts.


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