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The Zacks Analyst Blog Highlights Matador Resources, Pioneer Natural Resources and Diamondback Energy
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For Immediate Release
Chicago, IL – February 15, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Matador Resources Co.'s (MTDR - Free Report) , Pioneer Natural Resources Co. and Diamondback Energy, Inc. (FANG - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Oil Prices Remain Healthy: 3 Permian Explorers to Gain
The fate of exploration and production companies is primarily dependent on oil price. The lucrative commodity pricing scenario is aiding upstream firms to increase volumes. This is reflected in the fact that companies are adding more rigs in shale resources.
Oil Price Still High
West Texas Intermediate crude price is gradually approaching $80 per barrel, which is 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 $77.84 per barrel this year, reflecting an extremely favorable business environment for upstream operations.
Shale Oil Production to Rise
In March, total oil production from shale resources in the United States will likely increase by 75,000 barrels per day to 9,357 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 30,000 barrels per day to 5,682 MBbls/D in March.
Permian Explorers in the Spotlight
It is 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 the stocks of three companies operating in the most prolific basin. All the firms carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks to Gain
Solid oil prices are a boon for Matador Resources Co.'s 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. Last month, Matador agreed to acquire Advance Energy Partners Holdings, LLC, which comprises several oil and natural gas-producing properties and undeveloped acreage. Once the deal closes, MTDR expects the acquisition to be accretive to important valuation and financial metrics.
Pioneer Natural Resources Co. has a strong presence in the low-cost oil-rich Midland basin — a sub-basin of the broader Permian. The 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.
Diamondback Energy, Inc. is a leading pure-play Permian operator. FANG has expanded its footprint in the Midland basin since it acquired all leasehold interest and associated properties of Lario Permian, LLC – a wholly owned affiliate of Lario Oil & Gas Company. FANG also has an investment-grade balance sheet.
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Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Matador Resources, Pioneer Natural Resources and Diamondback Energy
For Immediate Release
Chicago, IL – February 15, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Matador Resources Co.'s (MTDR - Free Report) , Pioneer Natural Resources Co. and Diamondback Energy, Inc. (FANG - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Oil Prices Remain Healthy: 3 Permian Explorers to Gain
The fate of exploration and production companies is primarily dependent on oil price. The lucrative commodity pricing scenario is aiding upstream firms to increase volumes. This is reflected in the fact that companies are adding more rigs in shale resources.
Oil Price Still High
West Texas Intermediate crude price is gradually approaching $80 per barrel, which is 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 $77.84 per barrel this year, reflecting an extremely favorable business environment for upstream operations.
Shale Oil Production to Rise
In March, total oil production from shale resources in the United States will likely increase by 75,000 barrels per day to 9,357 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 30,000 barrels per day to 5,682 MBbls/D in March.
Permian Explorers in the Spotlight
It is 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 the stocks of three companies operating in the most prolific basin. All the firms carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks to Gain
Solid oil prices are a boon for Matador Resources Co.'s 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. Last month, Matador agreed to acquire Advance Energy Partners Holdings, LLC, which comprises several oil and natural gas-producing properties and undeveloped acreage. Once the deal closes, MTDR expects the acquisition to be accretive to important valuation and financial metrics.
Pioneer Natural Resources Co. has a strong presence in the low-cost oil-rich Midland basin — a sub-basin of the broader Permian. The 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.
Diamondback Energy, Inc. is a leading pure-play Permian operator. FANG has expanded its footprint in the Midland basin since it acquired all leasehold interest and associated properties of Lario Permian, LLC – a wholly owned affiliate of Lario Oil & Gas Company. FANG also has an investment-grade balance sheet.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.