By Johanna Bennett

With crude oil now trading at less than $50 a barrel, analysts at Barclays covering oil and gas producers aren’t messing around.

Earlier today, Barclay s cut ratings on the exploration and production sector. Analysts downgraded the large-cap E&P companies to negative from neutral and cut the small- and mid-cap group to negative from positive.

Why now? Analyst Thomas Driscoll and his team write:

The price action post the OPEC meeting has led many investors to ponder potential entry points for long positions in the E&P space…we have been surprised at the resilience of the E&P shares, particularly since oil’s slide has continued almost unabated. 2015 strip prices for WTI now stand

15% lower than our mid-December update while E&P shares, measured by the EPX, are unchanged over the same period. The disconnect between the oil futures curve and commodity price assumptions the market is reflecting in E&P shares is now wide enough that we think the downside risk to equity values clearly outweighs any potential gains if oil prices do recover. Further, we think the likelihood of an oil price recovery back towards levels anticipated by the equity markets is becoming increasingly unlikely, at least through the end of this year.

Analysts also attacked specific companies, downgrading Chesapeake Energy (CHK ), SandRidge Energy (SD ), Resolute Energy (REN ) and Halcon Resources (HK ) to underweight. Meanwhile, Devon Energy (DVN ), Continental Resources (CLR ), Kosmos Energy (KOS ), Marathon Oil (MRO ), RSP Permian (RSPP ) and Whiting Petroleum (WLL ) were cut to equal weight.

Oil prices have plunges nearly 60% since hitting a peak of better than $107 a barrel in June 2014 as sluggish demand ran headlong into a supply glut caused in part by the abundance of U.S. shale oil and OPEC’s refusal to cut production. Barclays still sees strong U.S. oil production in 2015 with companies cutting costs and budgets, which could delay a comeback for crude prices.

News of Barclays note added to pressure on E&P stocks. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP ) fell 2.8% and the iShares Dow Jones US Oil & Gas Exploration & Production Index Fund (IEO ) dropped 2.4%.

Barclays did pick some favorites. It upgraded Range Resources (RRC ) to overweight from equalweight. The firm maintained overweight ratings on large-cap E&P companies such as Canadian Natural Resources (CNQ ), EOG Resources (EOG ) and Noble Energy (NBL ) Inc. NBL, -2.19%

Among small- and mid-cap E&P names, analysts favor Antero Resources (AR ), Concho Resources (CXO ) and Cimarex Energy (XEC ).

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