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.
Goldman Sachs is very positive and said this earlier this summer when discussing the prospects for big oil:
While we expect upstream oil/gas producers to inflect positively quarter over quarter given stronger pricing realizations as commodity prices recover, we expect refining to act as a headwind and chemicals a tailwind to earnings/cash flow for more integrated companies.
Investors receive a 3.07% dividend. The Goldman Sachs price target for the shares is $68, and the Wall Street consensus price target is up at $77.24. ConocoPhillips stock closed on Wednesday at $56.02 a share.
This top pick has rallied nicely off the 2021 lows and actually could be a takeover target. Hess Corp. (NYSE: HES) is an exploration and production company that develops, produces, purchases, transports and sells crude oil, NGLs and natural gas. The company primarily operates in the United States, Denmark, Equatorial Guinea, the Joint Development Area of Malaysia/Thailand, Malaysia and Norway.
Analysts across Wall Street are positive on the growth prospects for Hess driven from Guyana. While Exxon is the operator and has executed well in finding/developing resources in the region, most analysts believe investors can get greater leverage to Guyana as a percentage of the enterprise value through Hess, without the declines in the base assets that Exxon is likely to experience.
Shareholders receive a 1.44% dividend. Goldman Sachs has a $97 price target, while the consensus target is higher at $100. Hess stock closed at $69.34 on Wednesday.
Magnolia Oil and Gas
This smaller cap company has been on a wild ride this year and its shares look poised to move higher. Magnolia Oil and Gas Corp. (NYSE: MGY) engages in the business of acquisition, development, exploration and production of oil, natural gas and NGLs reserves in the United States.
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