Centennial Resource Development, Inc. has witnessed upward earnings estimate revisions for 2021 and 2022 in the past 30 days. Also, this independent oil producer’s stock price has surged 312% year to date versus the industry’s rise of 86.5%.
Factors Favoring the Stock
The price of West Texas Intermediate crude, which is trading at more than $70 per barrel, has improved drastically from the negative territory touched in April 2020. The momentum is likely to continue since the coronavirus vaccine rollout will possibly help the economy recover strongly this year, thereby aiding fuel demand.
The massive improvement in oil price is definitely a boon for oil explorers and producers and Centennial Resource, having a strong footprint in the liquid-rich Delaware Basin, is well placed to capitalize on the same. The company has more than 15 years of economic inventory in the prolific basin, making the production outlook bright.
Centennial Resource also has a strong focus on curtailing costs. The company’s lease operating expenses and drilling & completion costs per lateral foot have been declining, aiding its bottom line. The company’s strong operating activities are reflected in continued free cashflow generation for three quarters despite the pandemic.
The upstream firm, carrying a Zacks Rank #2 (Buy), is also planning to significantly lower its leverage through this year. Until early 2026, the company has no senior debt maturities.
Other Stocks to Consider
Other prospective players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and PDC Energy, Inc. . While Whiting Petroleum carries a Zacks Rank #2, Continental and PDC Energy sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
PDC Energy is likely to see earnings growth of 111.8% in 2021.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Centennial Resource Development, Inc. has witnessed upward earnings estimate revisions for 2021 and 2022 in the past 30 days. Also, this independent oil producer’s stock price has surged 312% year to date versus the industry’s rise of 86.5%.
Factors Favoring the Stock
The price of West Texas Intermediate crude, which is trading at more than $70 per barrel, has improved drastically from the negative territory touched in April 2020. The momentum is likely to continue since the coronavirus vaccine rollout will possibly help the economy recover strongly this year, thereby aiding fuel demand.
The massive improvement in oil price is definitely a boon for oil explorers and producers and Centennial Resource, having a strong footprint in the liquid-rich Delaware Basin, is well placed to capitalize on the same. The company has more than 15 years of economic inventory in the prolific basin, making the production outlook bright.
Centennial Resource also has a strong focus on curtailing costs. The company’s lease operating expenses and drilling & completion costs per lateral foot have been declining, aiding its bottom line. The company’s strong operating activities are reflected in continued free cashflow generation for three quarters despite the pandemic.
The upstream firm, carrying a Zacks Rank #2 (Buy), is also planning to significantly lower its leverage through this year. Until early 2026, the company has no senior debt maturities.
Other Stocks to Consider
Other prospective players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and PDC Energy, Inc. . While Whiting Petroleum carries a Zacks Rank #2, Continental and PDC Energy sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
PDC Energy is likely to see earnings growth of 111.8% in 2021.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>