JAG - Jagged Peak Energy: This Permian Basin Oil Producer Can Withstand The Downturn
Jagged Peak Energy (JAG) could struggle with weak earnings and may burn cash flows if oil prices stay low. The Permian Basin-focused oil producer, however, has a high-quality asset base and will benefit from double-digit growth in production. Its cash flows will come under pressure but the company has also reduced its capital expenditure and has a solid hedge book which should provide crucial support to its cash flows. Jagged Peak also has ample liquidity and an under-levered balance sheet. It is, therefore, well-positioned to withstand weak oil prices.
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