EP Energy Corp. (fka EPEGQ)

[Timothy Smith]

EP Energy (EPE -21.2%) sinks to a 52-week low as UBS downgrades shares to Neutral from Buy with a $2.75 price target, cut from $4.50, after the company announced lower than expected Q4 volumes and FY 2016 earnings guidance.

With the amount of debt on the balance sheet and recent declines in production, UBS believes EPE may not be able to continue to produce enough oil in the near term to remain a strong player in the oil market.

UBS also notes that EPE's capex is expected to fall 25%-60% Y/Y to save cash and maintain company operations, but also ensures that EPE will have a difficult time growing either their top-line or profitability.