You've seen it here first! I received a research note in my inbox today saying that for oil and gas prices, and thus for energy equities, the worst may be over. So says Ben Dell, analyst with Bernstein. This is the first major analyst report I have come across that may be calling the bottom. "We believe the worst may now be behind us in energy," says Dell. "Oil and gas prices are now trading at the cash cost and while near term fundamentals may deteriorate further, it appears there is limited additional downside risk to the equities.
- We are upgrading the group and now recommend adding beta as the year progresses to take advantage of any rebound in pricing. Specifically we are upgrading TLM, CHK, RIG, ESV, NE and RDC. At the same time, we are downgrading XOM and OXY due to valuation.
- Our top picks in the E&P/Driller & Service space are now XTO, APC, NFX, EOG, ECA, HAL, NBR, RIG, CHK, TLM, PTEN, DVN and APA (all rated outperform). In the Majors, we continue to recommend an outperform stance on MRO, TOT and ENI."
Recommended Reading
TotalEnergies Eyes Suriname FID by Year-end 2024
2024-04-29 - France’s TotalEnergies and U.S. partner APA Corp. look to place their long lead orders ahead of a final investment decision related to their joint development offshore Suriname in Block 58.
Diamondback Stockholders All in for $26B Endeavor Deal
2024-04-29 - Diamondback Energy shareholders have approved the $26 billion merger with Endeavor Energy Resources.
ProPetro to Provide eFrac Services to Exxon’s Permian Operations
2024-04-29 - ProPetro has entered a three-year agreement to provide electric hydraulic fracturing services for Exxon Mobil’s operations in the Permian Basin.
Keeping it Simple: Antero Stays on Profitable Course in 1Q
2024-04-28 - Bucking trend, Antero Resources posted a slight increase in natural gas production as other companies curtailed production.
Oil and Gas Chain Reaction: E&P M&A Begets OFS Consolidation
2024-04-26 - Record-breaking E&P consolidation is rippling into oilfield services, with much more M&A on the way.