Quick Takes from Truist Financial - Aug 4

[dan_s]

Neal Dingmann is a solid energy sector analyst. He follows a lot of our model portfolio companies.

Centennial Resource Development, Inc. (CDEV, $6.28, Hold)
- Strong 2Q22 as Merger Around the Corner Strong 2Q22 as
Merger Around the Corner - Neal Dingmann

SilverBow Resources, Inc. (SBOW, $40.25, Buy) - 2Q22 Beat
and Reiterated Guide as FCF Continues to Quickly Decrease
Leverage 2Q22 Beat and Reiterated Guide as FCF Continues to
Quickly Decrease Leverage - Neal Dingmann

PDC Energy, Inc. (PDCE, $62.59, Buy) - 2Q22 Mixed and
Weaker 2022 Guide Though Strong Shareholder Returns
Reiterated 2Q22 Mixed and Weaker 2022 Guide Though Strong
Shareholder Returns Reiterated - Neal Dingmann

Callon Petroleum Company (CPE, $42.66, Buy) - 2Q22 Miss
Though Improved 2022 Guidance and Still Targeting 1x Leverage
in Coming Quarters 2Q22 Miss Though Improved 2022 Guidance
and Still Targeting 1x Leverage in Coming Quarters - Neal
Dingmann

Northern Oil and Gas, Inc. (NOG, $27.50, Buy) - 2Q Beat
and No Change to Prod/Capex Guide as Shareholder Returns
Remain Strong 2Q Beat and No Change to Prod/Capex Guide as
Shareholder Returns Remain Strong - Neal Dingmann

Ovintiv Inc. (OVV, $46.94, Buy) - 2Q22 Beat and Little Change
to 2022 Guide as Shareholder Returns Ramp Still Expected
2Q22 Beat and Little Change to 2022 Guide as Shareholder Returns
Ramp Still Expected - Neal Dingmann

Magnolia Oil & Gas Corporation (MGY, $24.02, Buy) - The
More Things Change the More They Stay the Same - Magnolia
materially boosted its dividend to better reflect its continued
shareholder returns that will likely continue to couple with
equally as material stock buybacks. Along with the dividend
change, the company continues with one of the most established
maintenance capital strategies of nearly any E&P. MGY continues
to have ample high return drilling inventory most exclusively
in Giddings that we think will continue to expand as further
delineation is done. We continue to forecast a stable two rig
program providing ample growth along with an industry leading
~30% D&C reinvestment. - Neal Dingmann

Ranger Oil Corporation (ROCC, $37.64, Buy) - Taking
Advantage of Market Disruptions - ROCC is one of few small
cap E&Ps that we believe is able to lean into share repurchases
when the market presents opportunities while simultaneously
growing production double digits. The company continues to
efficiently grow production along with having exciting incremental
opportunities such as the Austin Chalk. We believe the solid
operations/financial combination offers a unique investment
especially at today’s highly discounted relative valuation. We
forecast solid production/earnings/FCF growth in the latter part of
the year that should nicely ducktail into 2023 for a strong setup. -
Neal Dingmann

Enterprise Products Partners L.P. (EPD, $26.34, Buy) - 2Q22
Beat and Higher 2022 CAPEX Guide as More Expansion Projects
Announced2Q22 Beat and Higher 2022 CAPEX Guide as More
Expansion Projects Announced - Neal Dingmann

MPLX LP (MPLX, $32.02, Buy) - Strong Continued NGL Prices
Help Drive Further Solid Unit Distributions - MPLX’s recent capital
investments and strong NGL prices helped the company deliver
solid earnings. Just over a month ago MPLX renewed a number
of MPC pipeline contracts for ten years to ensure continued
stable results. The company remains active in its L&S segment
expanding various long-haul Permian/Bakken natural gas and
crude gathering pipelines given solid continued demand in the
regions. - Neal Dingmann