In May, APA posted earnings of $0.91 per share, which was a strong beat over the Wall Street expectations, with an impressive $500 million of free cash flow in the first quarter. At the current strip prices, the fiscal year cash flow could come in at $1.8 billion. International production is back-end loaded. The massive Suriname discovery, along with partner Total, back in January is literally in the stock for free.
The Stifel price target for the shares is $33, while the Wall Street consensus target is just $28.19. The last APA stock trade for Monday came in at $17.21, which was down almost 4% on the day.
This stock may be offering one of the best value propositions among the Stifel ideas. Devon Energy Corp. (NYSE: DVN) is an independent energy company that primarily engages in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs) in the United States and Canada. It operates approximately 19,000 wells.
The company also offers midstream energy services, including gathering, transmission, processing, fractionation and marketing to producers of natural gas, NGLs, crude oil and condensate through its natural gas pipelines, plants and treatment facilities.
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.
Stifel has a $45 price target, and the consensus target is $36.17. Devon Energy stock retreated over 3% on Monday to close at $24.93.
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 stock was hit hard recently and 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 and off federal property. EOG has 3000 locations not on federal lands, which most on Wall Street expect to expand through its exploration.
EOG Resources stock investors receive a 2.35% dividend. The whopping $114 Stifel price target is well above the $97.53 consensus target. The stock closed on Monday at $70.34, after pulling back almost 5%.
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