Wall Street analysts have noted in the past Diamondback Energy’s top-tier asset base, solid accretive additions and financial discipline, which they think allows for not only continued solid cash flow but could put the company in play as a takeover target. It continues to drill some of the most economical wells in the United States as efficiencies improve, costs decrease and activity remains in the better regions.
RBC has set its price target at $140, while the posted consensus target was last seen at $144.47. The shares closed Friday’s trading at $87.46 apiece.
This leading energy company is also a top pick across Wall Street. EOG Resources Inc. (NYSE: EOG) is one of the largest independent exploration and production companies operating in the United States, Canada, Trinidad, the United Kingdom and China.
The company has a big well in Loving County in the Delaware Basin. Top analysts say the well ranks as one of the best they have ever seen in the basin, and it could easily affect other companies drilling in the region. EOG’s average dollar gross per well on a yearly basis ranks third among all operators.
EOG Resources shareholders receive just a 0.95% dividend. Note that the $110 RBC price target is considerably lower than the $119.64 consensus target price for the shares. The stock ended last week’s trading at $72.48.
This is a leading integrated oil and gas company with extensive upstream operations. Marathon Oil Corp. (NYSE: MRO) operates through three segments. The North America Exploration and Production segment develops, explores for, produces and markets crude oil and condensate, natural gas liquids (NGLs) and natural gas in North America.
The International Exploration and Production segment explores for, produces and markets crude oil and condensate, NGLs and natural gas in Equatorial Guinea, Gabon, the Kurdistan Region of Iraq, Libya and the United Kingdom, as well as produces and markets products manufactured from natural gas, such as liquefied natural gas and methanol in Equatorial Guinea.
The Oil Sands Mining segment mines, extracts and transports bitumen from oil sands deposits in Alberta and Canada, and it upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.
Marathon investors receive a 1.69% dividend. RBC has a price target of $19. The posted consensus price objective is $22.02, and the stock closed trading on Friday at $11.98 a share.
Four outstanding companies that are not only priced right for investors looking to add energy exposure, but have huge upside to the RBC price targets. It should be noted that earnings are right around the corner, so it may make sense to buy partial positions now, and see how the results come in.