Goldman Sach

[dan_s]

Cut from an article I got on May 18th.
Note in this chart (https://www.tradingview.com/chart/wBMe44ta/) that WTI has been hanging around right under $60/bbl, which is a strong resistance level. Although I do not think WTI will return to $100/bbl anytime soon (unless OPEC wants it to or there is a terrorist attack inside Saudi Arabia), I do think it will continue to drift higher during the 2nd half of this year. I think we see $70/bbl by year-end. I am also getting mildly bullish on natural gas, so I do not agree with GS on their SELL recommendation for GPOR. - Dan

Goldman Sachs had a lot to say about all corners of the energy sector today in addition to the cut in its long-term oil price forecast, its Sell recommendations for oil majors BP, Statoil (NYSE:STO) and Chevron (NYSE:CVX), and its gloomy outlook for offshore drillers Transocean (NYSE:RIG), Diamond Offshore (NYSE:DO) and Atwood Oceanics (NYSE:ATW).
Goldman awards a Buy rating for Exxon Mobil (NYSE:XOM), "the only U.S. or European major that can generate sufficient free cash flow to cover its dividend near $60/bbl in 2016-17"; while the firm says other oil majors will be struggling to keep the dividend flat, XOM will be in a position to increase the dividend for the next several years.
With its expectation for long-term weakness in oil and gas prices, Goldman sees risk exposure in many names that are reliant on commodity prices, suggesting selling LINE, DPM, NGLS, while predicting PAGP and NS would benefit from a removal of the U.S. crude oil export ban.
The firm thinks many midstream MLP names now offer attractive valuations, recommending ENB, EPD, ETE, PAA, SXL, WNRL.
Goldman sees an upturn for frac sand provider Emerge Energy (NYSE:EMES), upgrading shares to Buy from Neutral.
Other Buys: CLR, NFX, CQP, HEP.
Other Sells: TRP, TCP, GPOR, MUR, GTE