What should I buy now?
Posted: Fri Apr 21, 2017 12:05 pm
Note that all of his Top Picks are in our Sweet 16.
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It's time to be bullish on U.S. oil producers, Stephens Inc. analysts Will Green and Ben Wyatt wrote Friday.
But as investors are "internally battling over which names to bet on going forward," the industry followers said it's important to keep in mind the next six to nine months are likely going to result in a divergence in E&P stock performance, Green and Wyatt explained in a research note published Friday.
"Producers' ability to execute on multi-year guidance will be the driver of deciding "winners and losers"; and while we feel largely comfortable with [the first quarter], as we move through the year, we will continue to monitor who could be most negatively impacted by potential operational challenges as well as changes in rig rates, ability to secure frac crews, sand/water sourcing and infrastructure," the analysts said.
In Stephen's coverage universe, it seems Pioneer Natural Resources (PXD) , Diamondback Energy (FANG) , Concho Resources (CXO) , Parsley Energy (PE) , PDC Energy (PDCE) , Cimarex Energy (XEC) are among those with the greatest upside between the firm's price target and the company's current stock price. For example, Stephen's price target for Pioneer is $239 per share, a 37% increase above the company's closing stock price of $177.44 a share Thursday.
It's little surprise that the majority of the firm's bets are producers focused on the Permian Basin of west Texas and New Mexico, as the play is widely regarded as the most prolific of U.S. shale formations given its stacked-pay potential and breakeven economics around $40 per barrel.
Full Article: https://www.thestreet.com/story/1409650 ... _ven=YAHOO
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It's time to be bullish on U.S. oil producers, Stephens Inc. analysts Will Green and Ben Wyatt wrote Friday.
But as investors are "internally battling over which names to bet on going forward," the industry followers said it's important to keep in mind the next six to nine months are likely going to result in a divergence in E&P stock performance, Green and Wyatt explained in a research note published Friday.
"Producers' ability to execute on multi-year guidance will be the driver of deciding "winners and losers"; and while we feel largely comfortable with [the first quarter], as we move through the year, we will continue to monitor who could be most negatively impacted by potential operational challenges as well as changes in rig rates, ability to secure frac crews, sand/water sourcing and infrastructure," the analysts said.
In Stephen's coverage universe, it seems Pioneer Natural Resources (PXD) , Diamondback Energy (FANG) , Concho Resources (CXO) , Parsley Energy (PE) , PDC Energy (PDCE) , Cimarex Energy (XEC) are among those with the greatest upside between the firm's price target and the company's current stock price. For example, Stephen's price target for Pioneer is $239 per share, a 37% increase above the company's closing stock price of $177.44 a share Thursday.
It's little surprise that the majority of the firm's bets are producers focused on the Permian Basin of west Texas and New Mexico, as the play is widely regarded as the most prolific of U.S. shale formations given its stacked-pay potential and breakeven economics around $40 per barrel.
Full Article: https://www.thestreet.com/story/1409650 ... _ven=YAHOO