Last year, this company bought RSP Permian for $9.5 billion, and most on Wall Street loved the deal. Concho Resources Inc. (NYSE: CXO) is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties.
It offers investors a unique combination of investment themes, including valuation, rate-of-change and resource expansion themes. The company is the largest acreage holder of the publicly traded Permian large-caps and provides investors peer-leading exposure to three of the most impactful catalysts across the Delaware Basin, including the Wolfcamp XY, Wolfcamp D and Bone Spring Shale.
Concho Resources has reported strong earnings but still has a lot of upside to the posted price targets.
Concho Resources pays a small 0.45% dividend. The gigantic $239 Stifel price target compares with a posted consensus target of $154.95. The shares closed Monday’s trading at $112 apiece.
This is another smaller capitalization stock for aggressive investors to consider. Parsley Energy Inc. (NYSE: PE) is an oil and gas producer with 227,000 net acres in the Permian Basin. The majority of its acreage sits on the Midland side of the basin, but the company also holds a small acreage position in the Delaware Basin. Through strategic acquisitions and acreage swaps, it has grown its acreage position since its initial public offering and has over 7,900 horizontal locations across multiple prospective zones
The company is a catalyst rich and is Permian Basin pure play. Parsley Energy has some of the strongest wells in the basin, generating returns that are among the best in the industry. It also is rapidly de-risking its drilling inventory and is well-positioned to continue to beat its strong growth projections.
Stifel has its price target set at $38. The consensus price target is $27.11, and the stock closed trading at $19.07 on Monday.
This energy stock has had a nice run off the bottom but still holds huge upside potential. QEP Resources Inc. (NYSE: QEP) is a holding company that engages in the exploration and production of oil and natural gas properties. It focuses in the Northern Region (primarily in North Dakota, Wyoming and Utah) and the Southern Region (primarily in Texas and Louisiana).
Aethon Energy Management recently announced the completion of its acquisition of natural gas assets from wholly owned subsidiaries of QEP Resources. The assets are located in the Haynesville basin in northwest Louisiana. The QEP assets comprise approximately 49,700 net acres and 607 operated wells of natural gas producing properties and undeveloped acreage in the Haynesville. Aethon III also acquired all of QEP’s associated gas gathering and treating systems related to these assets, supporting up to 600 millions of cubic feet equivalent per day of production.
The collective reserve base of QEP’s assets combines low risk, long life and highly predictable production with attractive development opportunities.
Stifel has a massive $18 price objective on the stock. The consensus target was last seen at $110.30, and the shares ended Monday at $8.28.
These five top oil stocks with huge 100% or more upside potential to the Stifel price targets also could be possible takeover targets. Even if none of them hit the huge price targets completely, they are all very cheap and trading at valuations that make them great additions to aggressive portfolios in which investors are looking to add energy.