GMX Resources (NYSE:GMXR) Faces Capex, Funding Challenges

GMX Resources (NYSE:GMXR) faces significant financing and capex challenges going into 2011, and need to focus on those over the next year or so, while lowering costs, said Canaccord Genuity.

"We are reiterating our rating and lowering our target price based on the company’s continued outspend of discretionary cash flow and exposure to higher cost, lower-return dry gas assets. While GMXR is making significant strides to reduce overall costs, based on our current commodity price assumptions, the company would need significant external capital in 2011 to fund its revised capex requirements," said Canaccord.

The company reiterated their "Hold" rating on GMX, which is trading at $4.87, up by $0.17, or 3.62 percent as of 12:48 PM EST. Canaccord has a price target of $5.50 on them.