Energy Business

Will Oil Explode Higher After the Colonial Pipeline Cyberattack? Buy 4 Integrated Energy Giants Now.


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, liquefied natural gas 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 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.  BofA Securities is very positive on the shares and said this:

Following the recent pullback, we are adding ConocoPhillips back to our Buy list with a higher price objective on modest balance sheet improvements. The company has led peers on the cash returns model and at current commodity levels, the potential scale of returns is impressive. While a strong balance sheet means it is inherently lower beta ConocoPhillips is well positioned vs other yield names in an oil recovery.

Investors receive a 3.02% dividend. BofA Securities has a $67 price target, and the consensus price target is $66.14. ConocoPhillips stock closed on Monday at $57.00 a share.

Exxon Mobil

Shares of this mega-cap energy leader have been on fire but still have big upside potential. 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.

The analysts said this about the industry giant after it posted strong numbers for the quarter:

Earnings beat versus our estimate was entirely on chemicals with margins at a 10 year high. Solid quarter with debt down $4 billion quarter-over-quarter, cost initiatives on track and with the announced sale of UK non-core assets. Retain Buy as ExxonMobil has invested through the cycle which positions it to expand its future free cash flow to support dividends and stock buybacks.

Investors receive a 5.56% dividend, which will continue to be defended. The massive $90 BofA Securities price target compares with a much lower $63.28 target. Exxon Mobil stock closed at $62.58 on Monday.