Zacks: All five of their Top Picks are in the Sweet 16
Posted: Fri Dec 20, 2019 10:38 am
Zacks Equity Research: "We can say that more upside awaits oil prices in 2020 as its demand outlook is improving and global supply is shrinking."
https://finance.yahoo.com/news/more-ups ... 01967.html
Here are Zacks' Top 5 Picks in Upstream Oil & Gas: with my comments in blue.
With the divestment of its Eagle Ford resources, Pioneer Natural Resources Company PXD has become a pure-play Permian stock. The company has estimated more than 20,000 drilling sites in the nation’s most prolific basin, which is likely to provide the company with scope for decades of oil production. The stock has not only witnessed positive earnings estimate revisions for 2020 but will see earnings growth of 9.2% in the New Year.
Diamondback Energy, Inc. FANG is a pure-play Permian player, with presence across more than 394,000 net acres. With more than 7,000 drilling locations in the basin, the company’s production outlook looks promising. We expect the company to see earnings growth of 34.7% in 2020.
Concho Resources Inc. CXO focuses on growth through a combination of acquisitions and active drilling in the lucrative Permian Basin spread over west Texas and New Mexico. The company currently owns roughly, 640,000 net acres in the Permian Basin and is one of the largest producers from the unconventional shale. In 2020, the company is expected to see earnings growth of 45%.
Callon Petroleum Co. CPE is solely focused on the Permian Basin. The company boasts an impressive footprint (85,000 net acres) throughout the region. The company entered the basin in 2009 with around 8,800 net acres and has been strengthening its hold in the region since then. In 2020, the stock is likely to see earnings growth of roughly 42%. < Note that Callon's merger with Carrizo Oil & Gas (CRZO) should close soon, adding a second core area in the South Texas Eagle Ford. - Dan.
Parsley Energy, Inc. PE, based in Midland, TX, is a pure-play Permian oil producer. The company currently owns roughly 266,000 net acres in the Permian Basin — 146,000 acres in the Midland Basin and 120,000 acres in the Delaware Basin. We expect the upstream energy player to see earnings growth of 46.1% in 2020.
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In my opinion, CXO, FANG and PXD are the "Safe Bets" with ~50% upside. CPE and PE have more upside, just because they are a bit more "off the radar screen" of the Wall Street Gang. After CPE closes their merger with CRZO, it should get a lot more attention and analysts are going to like the numbers.
https://finance.yahoo.com/news/more-ups ... 01967.html
Here are Zacks' Top 5 Picks in Upstream Oil & Gas: with my comments in blue.
With the divestment of its Eagle Ford resources, Pioneer Natural Resources Company PXD has become a pure-play Permian stock. The company has estimated more than 20,000 drilling sites in the nation’s most prolific basin, which is likely to provide the company with scope for decades of oil production. The stock has not only witnessed positive earnings estimate revisions for 2020 but will see earnings growth of 9.2% in the New Year.
Diamondback Energy, Inc. FANG is a pure-play Permian player, with presence across more than 394,000 net acres. With more than 7,000 drilling locations in the basin, the company’s production outlook looks promising. We expect the company to see earnings growth of 34.7% in 2020.
Concho Resources Inc. CXO focuses on growth through a combination of acquisitions and active drilling in the lucrative Permian Basin spread over west Texas and New Mexico. The company currently owns roughly, 640,000 net acres in the Permian Basin and is one of the largest producers from the unconventional shale. In 2020, the company is expected to see earnings growth of 45%.
Callon Petroleum Co. CPE is solely focused on the Permian Basin. The company boasts an impressive footprint (85,000 net acres) throughout the region. The company entered the basin in 2009 with around 8,800 net acres and has been strengthening its hold in the region since then. In 2020, the stock is likely to see earnings growth of roughly 42%. < Note that Callon's merger with Carrizo Oil & Gas (CRZO) should close soon, adding a second core area in the South Texas Eagle Ford. - Dan.
Parsley Energy, Inc. PE, based in Midland, TX, is a pure-play Permian oil producer. The company currently owns roughly 266,000 net acres in the Permian Basin — 146,000 acres in the Midland Basin and 120,000 acres in the Delaware Basin. We expect the upstream energy player to see earnings growth of 46.1% in 2020.
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In my opinion, CXO, FANG and PXD are the "Safe Bets" with ~50% upside. CPE and PE have more upside, just because they are a bit more "off the radar screen" of the Wall Street Gang. After CPE closes their merger with CRZO, it should get a lot more attention and analysts are going to like the numbers.