This stock has had a nice run off the bottom but still holds huge upside potential. QEP Resources Inc. (NYSE: QEP) is a holding company engaged in the exploration and production of oil and natural gas properties. It focuses on 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 supporting up to 600 million cubic feet equivalent per day of production 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. The collective reserve base of QEP’s assets combines low risk, long life and highly predictable production with attractive development opportunities.
The massive $17 Stifel price objective compares with a $9.50 consensus target price. The shares ended last week at $7.23 apiece.
This stock was massacred in the spring selling and offers serious upside potential. Whiting Petroleum Corp. (NYSE: WLL) is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain and Permian Basin regions of the United States.
The company’s largest projects are in the Bakken and Three Forks plays in North Dakota, the Niobrara play in northeast Colorado and its Enhanced Oil Recovery field in Texas.
While Whiting released weak first-quarter results in May, the company’s guidance for 2019 remained pretty much unchanged, and it posted solid well results in the Bakken. The company’s impressive completion optimization continues along with solid cost controls in place. Whiting offers investors a steady oil-levered growth profile and evolving free-cash-flow prospects.
Stifel has set its price target at $53, well above the consensus target last seen at $32.95. The shares closed trading most recently at $18.68.
This is another smaller cap company with solid upside potential and also another top Permian Basin play. WPX Energy Inc. (NYSE: WPX) is an independent oil and natural gas exploration and production company that engages in the exploitation and development of unconventional properties in the United States. Its principal areas of operation include the Permian Basin, the Williston Basin in North Dakota and the San Juan Basin in New Mexico and Colorado.
WPX is a premier Permian-levered operator with sector-leading debt-adjusted cash flow growth supported by strong execution in the core Delaware, all while trading at Williston valuations primarily due to its relatively high financial leverage.
Stifel analysts have their price target set at $28. The posted consensus price objective is $18.81, and the stock was changing hands most recently at $11.51 a share.
These five top picks from the Stifel team all were pounded during the spring and now offer investors massive upside potential to the assigned price targets. They also range from very aggressive to more conservative, so investors have a solid variety of stocks to match to their risk tolerance. In addition, all could be considered potential targets, especially those with bigger Permian Basin footprints.
Its location on the Permian Basin makes Midland, Texas, one of the richest towns in America.