Berry Pete shares hit new 52-week low on downgrade

NEW YORK - Berry Petroleum Co. shares sank to a seven-year low Friday as crude oil prices plunged and a Morgan Keegan analyst removed his "Buy" rating on the oil and gas producer.

Shares fell $2.28, or 26 percent, to $6.50 in afternoon trading, their lowest point since 2001. The stock has declined along with the sinking price of crude oil, which is down more than 70 percent since its summer high of $142.27.

On Friday crude prices dropped to $40.85, the cheapest price since 2005.

Morgan Keegan analyst Chris Pikul on Friday downgraded the company to "Market Perform." Pikul said Berry Petroleum is managing its liquidity position and is poised to execute a scaled back 2009 drilling program, but tanking oil prices and the company's high debt levels will likely deter investors. Pikul said a dramatic turnaround in oil prices may not occur until later in 2009.

Pikul added that shares of Berry are trading at a "deep discount" compared with his year-end estimate of $30 per share, but still downgraded the stock due to "potential reserve revisions due to price, minimal organic growth in 2009, and deteriorating value in the Piceance (Basin) due to regional pricing issues."

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