Northern Oil & Gas
This is an outstanding idea for investors looking for a smaller cap play with far fewer capital expenditures. Northern Oil & Gas Inc. (NYSE: NOG) is an independent energy company engaged in the acquisition, exploration, exploitation, development and production of crude oil and natural gas properties in the United States.
The company primarily holds interests in the Bakken and Three Forks formations in the Williston Basin of North Dakota and Montana. As of December 31, 2020, it owned working interests in 6,640 gross producing wells and it had proved reserves of 122,632 million barrels of oil equivalent.
The company announced earlier this summer that it was expanding its reach by entering into three definitive agreements to acquire non-operated interests across approximately 2,900 net acres located in the heart of Reeves County, Texas, and Lea and Eddy Counties, New Mexico, for a combined purchase price of $102.2 million.
Stifel has set a $23 price target. The consensus target is slightly higher at $23.88, and Monday’s closing share price was $15.61.
Pioneer Natural Resources
Many Wall Street analysts love this stock as a pure crude oil play. Pioneer Natural Resources Co. (NYSE: PXD) operates a modern fleet of more than 24 top-performing drilling rigs throughout onshore oil and gas producing regions of the United States and Colombia. Pioneer production services are supported by 100 well-servicing rigs, more than 100 cased-hole, open-hole and offshore wireline units, and a range of advanced coiled tubing units.
Pioneer is a huge player in the Permian Basin and in the Eagle Ford in Texas, and the company owns more than 20,000 locations in the world’s second-largest oil reservoir in the Midland Basin. With a stellar balance sheet, the company is poised to remain a top player in the Permian, as it expects to deliver solid production growth in 2021 and beyond.
As of December 31, 2020, the company had proved undeveloped reserves and proved and developed non-producing reserves of 31 million barrels of oil, 17 million barrels of NGLs and 88 billion cubic feet of gas, and it owned interests in 11 gas-processing plants.
Investors receive just a 0.38% dividend. The Stifel price target is $197. The consensus target is $208.27, and Pioneer Natural Resources stock closed on Monday at $16.55, after a 3% decline on the day.
These are five outstanding ideas for investors looking at energy stocks now. It is very possible as the market absorbs the OPEC increase in production and the general overbought conditions in the major indexes that these stocks could trade flat to lower in the near term. It may make sense to perhaps buy a partial position in front of what should be some very solid earnings reports.