Barclays downgraded APA Corporation and CNX Resources to Underweight, citing a revised outlook for lower oil and gas prices. The bank cut its 2026 WTI oil forecast to $61 per barrel from $63 and its Henry Hub natural gas price estimates for 2026 and 2027. The move reflects growing concerns about a potential global oil supply overhang and easing gas momentum.

For APA, Barclays flagged that the stock’s valuation no longer looks compelling. The bank projects a free cash flow yield of about 3.8% in 2026 at current strip prices, a premium to larger onshore peers. CNX’s recent share outperformance, driven by optimism around its deep Utica potential, has left the stock trading in line with peers despite a shorter inventory life.

The bank reinstated Occidental Petroleum at Equal Weight following its OxyChem divestiture. The sale accelerates debt reduction after the CrownRock acquisition but removes a business that historically cushioned cash flow through commodity cycles. Barclays expects cash returns to remain constrained until preferred share redemptions begin in 2029.