Devon Energy’s production is weighted toward crude oil while growth opportunities are liquids focused, anchored by the Delaware Basin, SCOOP/STACK, Eagle Ford Shale, Canadian Oil Sands, and the Barnett. Devon also owns equity in the publicly traded midstream master limited partnership EnLink.
Shareholders receive a 1.83% dividend. The Goldman Sachs price target on the shares is $29, while the Wall Street consensus target is $30.70 The last trade for Devon Energy stock on Thursday hit the tape at $24.07 a share.
This is a solid way for investors who are more conservative to play the energy sector. Marathon Petroleum Corp. (NYSE: MPC) is one of the largest independent petroleum refining and marketing companies in the United States.
Until just recently, Marathon Petroleum operated approximately 2,750 retail sites under the Marathon and Speedway brands. In addition, it operates a logistics network of pipelines, barges, trucks and terminals that store and transport crude and products.
Last year, the company announced it would sell Speedway to 7-11 in an all-cash deal valued at $21 billion, or $16.5 billion after-tax. The sale transforms the company’s balance sheet and creates options to revisit the corporate structure of MPLX. Many on Wall Street feel that with Speedway removed, the dislocation in refining value becomes even more transparent as the company trades much cheaper than its industry peers do. The deal now is expected to close in this quarter.
Shareholders receive a robust 4.14% dividend. Goldman Sachs has a price target of $64, while the consensus target is $63.31. Marathon Petroleum closed trading at $56.04 a share on Thursday.
This is a top Canadian energy play for investors to consider. Suncor Energy Inc. (NYSE: SU) operates as an integrated energy company and primarily focuses on developing petroleum resource basins in Canada’s Athabasca oil sands. It explores, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. Suncor also transports and refines crude oil, markets petroleum and petrochemical products primarily in Canada and markets third-party petroleum products.
With the North American majors pivoting more toward the Permian with potential free-cash-flow implications, the company does not expect its “industrial model” to change. The focus remains on reliable cash flow, steady capital allocation framework and top-tier cash returns. In addition, the company is trading at a discount to its historical multiple.
Investors in Suncor Energy stock receive 3.06% dividend. The $25 Goldman Sachs price objective compares with the much higher $42.83 consensus target price. The shares closed on Thursday at $21.76 per share.
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