Energy Business

BofA Securities Says Buy Energy Despite Executive Orders: 5 Dividend Winners


This is another large-cap company with a stock that offers strong value for investors. ConocoPhillips (NYSE: COP) explores for, produces, transports and markets crude oil, bitumen, natural gas, LNG and natural gas liquids worldwide.

Conoco’s portfolio includes resource-rich North American tight oil and oil sands assets; lower-risk legacy assets in North America, Europe, Asia and Australia; various international developments; and an inventory of conventional and unconventional exploration prospects.

Many Wall Street analysts feel that Conoco can accelerate growth from a reloaded portfolio depth in the Bakken and Eagle Ford, with visibility on future growth from a sizable position in the Permian. While sentiment on the company has soured given, federal lands exposure, M&A uncertainty and some less than stellar earnings execution, the analysts expect the stock price to reflect a recovery in 2021 and 2022 crude oil prices.

Investors receive a 4.23% dividend. BofA Securities has a $51 price target, but the consensus price is up at $54.12. ConocoPhillips stock was last seen on Wednesday trading at $40.65 a share.

Exxon Mobil

The energy giant finally has been removed from the penalty box on Wall Street and offers investors an incredible entry point. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.

Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.

Exxon has meaningfully cut its capital spending outlook for 2021 to a range of $17 billion to $19 billion, down from an earlier estimate of between $30 billion and $35 billion. Its guidance for 2022 to 2025 is a range of $20 billion to $25 billion.

In addition, Exxon expects to exceed its initial guidance of a 15% reduction in cash operating expenses in 2020 due in part to a global workforce reduction of the same percentage point magnitude by the end of 2021.

The company pays investors a huge 7.67% dividend, which probably will continue to be defended.  The huge $79 BofA Securities price target is well above the $50.57 consensus figure. Exxon Mobil stock closed most recently at $45.35 a share.