Keep an Eye on 3 Permian Explorers as Oil Price is Still Healthy – Yahoo Finance

Science & Technology

Since the beginning of this year, oil explorers and producers have focused their attention on shale resources following a favorable crude pricing environment. The count of rigs will likely keep increasing since oil price is expected to remain healthy. Thus, with rising drilling activities, production will possibly increase, aiding businesses for upstream energy players.
West Texas Intermediate crude price is trading at more than $75 per barrel, which is still highly favorable for exploration and production activities. Also, in its short-term energy outlook, the U.S. Energy Information Administration (“EIA”) projected the average spot price of West Texas Intermediate crude at $95.88 per barrel this year, significantly higher than $68.21 in 2021.
In December, total oil production from shale resources in the United States will likely increase by 91,000 barrels per day to 9,191 thousand barrels per day (MBbl/D), per EIA. The shale resources comprise Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian.
Of all the resources, the Permian will witness the highest increase in daily oil production next month, according to the EIA’s drilling productivity report. In the Permian, the EIA projects oil production to rise by 39,000 barrels per day to 5,499 MBbls/D in December.
It has been crystal clear that a favorable crude pricing scenario is backing higher production volumes. Improving Permian production amid healthy oil prices has raised the incentive to keep an eye on stocks of companies operating in the most prolific basin.
Diamondback Energy, Inc. FANG is a leading pure-play Permian operator. Diamondback Energy, carrying a Zacks Rank #3 (Hold), will be expanding its footprint in the Midland basin since it recently signed a definitive purchase agreement for acquiring all leasehold interest and associated properties of Lario Permian, LLC – which is a wholly owned affiliate of Lario Oil & Gas Company. FANG also has an investment-grade balance sheet.
Pioneer Natural Resources Company PXD has a strong presence in the low-cost oil-rich Midland basin — a sub-basin of the broader Permian. The #3 Ranked upstream energy player has a massive inventory of premium wells that will likely generate significant returns for the company.
Pioneer Natural is focused on returning capital to shareholders. This includes a substantial variable dividend along with a strong base dividend. PXD is also employing opportunistic share repurchases to reward shareholders.
Pioneer Natural has considerably lower exposure to debt capital than the composite stocks belonging to the industry. This reflects PXD’s strong balance sheet on which the firm can rely to sail through the volatile energy businesses. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Solid oil prices are a boon for Matador Resources Company’s MTDR upstream operations. This is because MTDR has a strong presence in oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Favorable oil price is likely to aid it in increasing production volumes. For 2022, the upstream energy player with a Zacks Rank of 3 expects total production of 37.7-38.3 million barrels of oil equivalent (MMBoE), higher than 31.5 MMBoE in 2021.
On another positive note, Matador plans to turn to sales a net of 71 wells this year, including operated and non-operated wells. The prime priorities that MTDR has set for this year are lowering debt levels, delivering free cashflows and maintaining or increasing dividends.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research
Related Quotes
The Canadian dollar edged higher against its U.S. counterpart on Wednesday after the Federal Reserve signaled that the pace of interest rate hikes could slow, but gains were capped by tumbling oil prices. "I think we are inching back to session highs because there were some dovish soundbites in the FOMC minutes," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. "If it wasn't for oil we would be much higher."
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Gold prices ended higher on Wednesday as traders awaited the release of minutes from the Federal Reserve's most recent policy meeting.
Yahoo Finance’s Rick Newman joins the Live show to discuss reports that the U.S. and its allies are looking to agree on a Russian oil price cap.
Investors anxiously await the quarterly release of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) 13-F regulatory filing. It reveals which stocks Warren Buffett's holding company bought and sold during each quarter, and that gives investors lots of food for thought about investments. The third-quarter filing offered some interesting news for Buffett-followers, such as a new position in building products company Louisiana-Pacific.
Investors curious on the next move in the broader market would be wise to be paying extra attention to shares of multinational tech giant Apple.
Federated Hermes Chief Equity Strategist Phil Orlando joins Yahoo Finance Live to examine the market outlook against the Fed's inflation-fighting policies, in addition to discussing positions in the S&P 500 and bond markets.
President Volodymyr Zelenskyy has said that the seat of the Russian Permanent Representative to the UN Vasily Nebenzya was "under occupation" but as good as "vacant" in practice. Source: President Zelenskyy's video address Quote: "I have addressed the UN Security Council and called on it to respond to Russian terror.
Two major projects planned for the Texas Gulf Coast hit important milestones this week. Houston-based ConocoPhillips (NYSE: COP) and Sempra Infrastructure, a subsidiary of California-based Sempra (NYSE: SRE), on Nov. 22 finalized previously announced agreements related to a liquefied natural gas terminal planned for Jefferson County. The agreements call for ConocoPhillips to acquire a 30% direct equity holding in Port Arthur Liquefaction Holdings LLC and to offtake approximately 5 million tonnes per annum of LNG from the project over 20 years.
Gadsden council members have been assigned to seven standing committees dealing with various aspects of city government.
In this article, we discuss the top 10 stock picks of Rajiv Jain’s GQG Partners as of the end of the third quarter of 2021 and assess their performance over the past 12 months. If you want to skip our detailed analysis of Jain’s history, investment philosophy, and hedge fund performance, go directly to the […]
Shares hit a two-month high and the dollar swooped towards a three-month low on Thursday, after Federal Reserve signals of smaller interest rate rises from next month were followed by the message from Frankfurt that the ECB will plough on. With Wall Street shut for Thanksgiving, it was up to Europe to continue the rebound in market confidence that has been building for more than a month. It seemed a bit of a struggle early on when London's FTSE refused to budge, but there were just enough gains in the rest of Europe [.EU] and in Asia [.SS][.T] overnight to ensure things kept shuffling forward.
Binance chief Changpeng Zhao said the fund would initially have $1 billion to buy up distressed assets, but the figure could be increased.
The Oklahoma Sooners projected to land former four-star defensive tackle and Notre Dame transfer Jacob Casey. From @john9williams
It said Putin had told Sudani that a price cap would have serious consequences for the global energy market. "Attempts by a number of Western countries to impose restrictions on the cost of crude oil from Russia were touched upon," the Kremlin's statement said. "Vladimir Putin stressed that such actions contradict the principles of market relations and are highly likely to lead to serious consequences for the global energy market."
Chinese oil and gas major CNOOC has sounded out potential buyers of its interests in U.S. oilfields, two sources said, stepping up its retreat from Western nations amid sanctions concerns and calls for domestic investment. Reuters reported in April that CNOOC was considering an exit from its operations in Britain, Canada and the United States, because of concerns in Beijing that those assets could become subject to Western sanctions, owing to China's refusal to condemn Russia's invasion of Ukraine. Beijing is also stepping up efforts to boost energy security, requiring CNOOC and others to raise domestic production and invest in new, more costly and challenging resources to help arrest fast-depleting reserves in existing conventional oilfields.
ISLAMABAD (Reuters) -Pakistan's outgoing army chief rejected on Wednesday as "fake and false" claims by ousted prime minister Imran Khan that a U.S.-backed conspiracy had toppled his government, and also said the military would play no role in national politics in future. General Qamar Javed Bajwa made his comments in one of his farewell addresses at the military's headquarters in the garrison city of Rawalpindi, which lies next to the capital Islamabad. "You think that the armed forces would sit idly by if there were an external conspiracy in the country," Bajwa said, referring to Khan's claim that the parliamentary confidence vote that ousted him in April was part of a U.S.-backed plot.
Ticketmaster is facing the music after the epic fiasco surrounding Taylor Swift’s Eras Tour. Shortly after the cancelation of the public sale for the tour, it was revealed there was already a Justice Department investigation into the service. Now, the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights has announced it will hold a hearing “to examine the lack of competition in the ticketing industry.”
The new College Football Playoff rankings are out and Ohio State vs. Michigan is officially a top three matchup for The Game. #GoBucks
The U.S. may be on the verge of giving Chevron Corp. permission to expand its oil operations in Venezuela, provided talks can resume with the opposition.