This company has very large exposure to crude oil. Continental Resources Inc. (NYSE: CLR) is primarily a producer of onshore U.S. oil and has positioned itself in two growing hydrocarbon discoveries in the country: 1) the Bakken oil play in Montana and North Dakota, and 2) the SCOOP/STACK in Oklahoma, giving the company good growth opportunities for years to come.
Many on Wall Street feel that the company’s investment thesis is virtually unmatched. Investors get core Permian-like acreage at a non-Permian valuation. Of greatest importance, Continental is one of few diversified large-cap stocks that offers investors exposure to low-cost oil outside of the Permian. With current capacity and distribution issues in the Permian, this is another solid reason to own shares.
The $26 Truist Securities price objective is above the $21.10 consensus target price. Continental Resources stock was last seen on Thursday at $21.82, down over 6% on the day.
This leading energy firm shows up well on many Wall Street screens. 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’s principal producing areas in the United States are located in New Mexico, North Dakota, Texas, Utah and Wyoming.
The stock was hit hard when the U.S. president announced no more oil drilling on federal lands, and it is offering an outstanding entry point for investors looking for quality ideas in the sector. EOG has secured four years of drilling permits while retaining flexibility to reallocate resources to other parts of the portfolio. EOG has 3,000 locations not on federal lands, which most on Wall Street expect to expand through its exploration.
Holders of EOG Resources stock receive a 2.48% dividend. The price target at Truist Securities is $63. The $69.09 consensus target is higher, but shares closed trading on Thursday at $60.57, after pulling back almost 5% for the day.
The price of oil can be very volatile, as we have seen over the past year. While this recent spike may take a break soon, the wildcard of the economy could provide ample support, especially as we move closer to the all-important summer driving and travel season.