Jefferies likes GPOR, RRC, CXO, DVN and CRZO

Post Reply
dan_s
Posts: 37325
Joined: Fri Apr 23, 2010 8:22 am

Jefferies likes GPOR, RRC, CXO, DVN and CRZO

Post by dan_s »

Jefferies buys include Gulfport Energy GPOR -0.17%, Range Resources RRC -0.35%, Consol Energy and EQT EQT +0.8%, which have a presence in the Utica and Marcellus shales, Pioneer Natural Resources PXD -1.03% in the Midland basin, and Concho Resources and Devon Energy in the Permian basin. Its other buys include offshore driller Kosmos Energy, Carrizo Oil and Gas and Southwestern Energy.

Kosmos Energy, Jefferies believes, has the most upside with a potential gain of 32% relative to the firms price target.

http://www.forbes.com/sites/antoinegara ... oil-patch/

I do not agree with their bearish outlook for oil demand. Pickup and SUV sales are going up fast. RV and boat sales will also be going up. There is a big RV show in Houston this week and they are expecting record crowds. Plus, look at the employment report. As several hundred thousand more people go to work each month they have to drive there. A strong U.S. dollar is bad for oil prices but very good for the Asian economies as U.S. imports are going up. Demand for fuels is going up BIG this summer. - Dan
Dan Steffens
Energy Prospectus Group
Post Reply