Note today from Goldman Sachs - Jan 31

[dan_s]

"We revise our US E&Ps earnings and valuation models to incorporate our constructive oil price outlook of $80-$105/bbl Brent for 2022-2024+ vs. our previous range of $70-$90/bbl (as highlighted by our Commodities Research colleagues in a recent note), update for 4Q actual commodity prices and incorporate higher cost inflation."

> Producer capital discipline.
We expect producers to reiterate their commitment towards capital discipline for 2022 owing to macro factors (OPEC spare capacity/uncertainty around demand) and their focus on FCF generation.

> FCF outlook and capital returns.
We expect the majority of producers to generate higher FCF sequentially supported by a better macro outlook in 4Q21. We see a
favorable setup for oil producers in 2022 driven by our bullish oil outlook, which we believe will support further deleveraging and higher capital returns.

GS's Top Picks are COP, EQT, FANG and PXD