Jan 12 (Reuters) - Barclays Capital cut its price target on Encore Energy Partners LP to reflect the brokerage's lowered commodity price reference deck.
Shares of Encore Energy fell as much as 12 percent Monday morning on the New York Stock Exchange.
Barclays cut its price target on Encore to $24 from $27, but maintained an 'equal weight' rating on the stock.
The brokerage cut its 2009 NYMEX oil estimate by $10 to $55 per barrel and natural gas estimate by $1 to $5.50 per million British thermal unit.
Barclays' analyst Jeffrey Robertson saw Encore's full-year distribution at $2.40 per unit in 2009, about 2 percent down year-over-year, and $1.82 per unit in 2010.
'The decrease in '10 is primarily attributed to oil hedges with lower floor prices. The company's hedging strategy leaves approximately two-thirds of estimated production over the next two years exposed to upside in commodity prices,' Robertson wrote in a note to clients.
Shares of the company were trading 21 cents down at $14.81. Earlier, they fell as much as 12 percent to $13.25.
(Reporting by Arup Roychoudhury in Bangalore; Editing by Anil D'Silva)
(arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net)) Keywords: ENCORE/RESEARCH BARCLAYS
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