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3 Stocks to Gain as Phasing Out of Oil is Not Feasible
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Saudi Aramco CEO Amin Nasser stated that the peak in demand for fossil fuels is not expected to happen in the near future and emphasized that the existing energy transition strategy is evidently falling short on many fronts. Thus, the outlook for oil and gas companies seems bright, paving the way for EOG Resources (EOG - Free Report) , Matador Resources Company (MTDR - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) to gain.
Energy Transition Failing
Nasser mentioned that despite investments across the world exceeding $9.5 trillion in alternative energy sources over the past two decades, renewable energy is yet to fully replace hydrocarbons on a large scale.
In the United States, the transition to natural gas from coal has primarily resulted in reducing more than 65% of carbon emissions. Nasser thus explained that the focus should not be on phasing out oil and natural gas but rather on reducing emissions, possibly through efficiency improvements.
Oil & Gas Stocks in the Spotlight
Considering the backdrop, it would be wise to keep an eye on companies involved in oil and gas exploration and production in the prolific shale resources in the United States. Employing our proprietary stock screener, we have zeroed in on three such stocks. All the stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources holds substantial acreages in prolific oil shale plays such as Permian and Eagle Ford, with numerous untapped premium drilling locations, contributing to an optimistic production outlook. The company has consistently been witnessing a notable decrease in the debt-to-total capitalization ratio at the end of each of the last four reported quarters, reflecting a strong debt reduction strategy.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. In the sub-basin of the broader Permian, the company has a vast inventory of drilling areas that will back the exploration and production company’s production volumes.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company is likely to continue witnessing increased production volumes. FANG also has an investment-grade balance sheet.
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3 Stocks to Gain as Phasing Out of Oil is Not Feasible
Saudi Aramco CEO Amin Nasser stated that the peak in demand for fossil fuels is not expected to happen in the near future and emphasized that the existing energy transition strategy is evidently falling short on many fronts. Thus, the outlook for oil and gas companies seems bright, paving the way for EOG Resources (EOG - Free Report) , Matador Resources Company (MTDR - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) to gain.
Energy Transition Failing
Nasser mentioned that despite investments across the world exceeding $9.5 trillion in alternative energy sources over the past two decades, renewable energy is yet to fully replace hydrocarbons on a large scale.
In the United States, the transition to natural gas from coal has primarily resulted in reducing more than 65% of carbon emissions. Nasser thus explained that the focus should not be on phasing out oil and natural gas but rather on reducing emissions, possibly through efficiency improvements.
Oil & Gas Stocks in the Spotlight
Considering the backdrop, it would be wise to keep an eye on companies involved in oil and gas exploration and production in the prolific shale resources in the United States. Employing our proprietary stock screener, we have zeroed in on three such stocks. All the stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources holds substantial acreages in prolific oil shale plays such as Permian and Eagle Ford, with numerous untapped premium drilling locations, contributing to an optimistic production outlook. The company has consistently been witnessing a notable decrease in the debt-to-total capitalization ratio at the end of each of the last four reported quarters, reflecting a strong debt reduction strategy.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. In the sub-basin of the broader Permian, the company has a vast inventory of drilling areas that will back the exploration and production company’s production volumes.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company is likely to continue witnessing increased production volumes. FANG also has an investment-grade balance sheet.