Energy Business

Goldman Sachs Says Buy These 4 Top Oil Stocks With Huge 2022 Upside Potential

The company’s properties are located primarily in Karnes County and the Giddings Field in South Texas principally comprising the Eagle Ford Shale and the Austin Chalk formation:

  1. World-class acreage footprint located in the core of the Eagle Ford, substantially de-risked
    -Full field development allows for operational efficiencies and improved performance
    -Well known, repeatable acreage position targeting multiple benches and representing some of the best economics in North America
  2. Giddings Field: Redeveloping as an Emerging Play
    -Emerging, high-growth asset with extensive inventory potential and significant development flexibility
    -Held-by-production nature of asset allows for systematic delineation and optimization of play while staying within asset cash flow
    -Modern high-intensity completions have resulted in a step-change improvement in well performance
    -At least 1,000 locations based on conservative spacing assumptions

Magnolia Oil and Gas stock investors receive a 1.10% dividend. The $18 Goldman Sachs price target is higher than the $17.04 consensus estimate. Shares close at $14.51 on Wednesday.

Occidental Petroleum

This energy company made huge news with a Warren Buffett-backed purchase of Anadarko Petroleum in 2019. Occidental Petroleum Corp. (NYSE: OXY) engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa and Latin America.

The company’s Oil and Gas segment explores for, develops and produces oil and condensate, NGLs and natural gas. The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates and calcium chloride.

Its Midstream and Marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, carbon dioxide and power. This segment also trades around its assets, consisting of transportation and storage capacity, and it invests in entities.

Goldman Sachs has set a $35 price target on Occidental Petroleum stock. The $34.09 consensus target is also well above Wednesday’s final trade of $24.63 per share.

These four top oil stocks could be poised to have a big end of the year and a very strong 2022 if the Goldman Sachs pricing estimates of $72 per barrel for next year are accurate. All these stocks offer investors positive exposure to the energy sector and, after the recent oil price movement, they are priced right.

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