This is a solid energy exploration and production play, and with oil and gas prices rising, it could be an outstanding idea now. Kosmos Energy Ltd. (NYSE: KOS) is a deepwater independent oil and gas exploration and production company focused along the Atlantic Margins.
The company’s primary assets include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal. It also maintains a proven basin exploration program.
Kosmos Energy’s focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.
Goldman Sachs has a $4.50 target on Kosmos Energy stock. The posted consensus target is $3.55, and shares faced resistance at the $3 mark late last week.
This stock has traded sideways all year long and could be ready to run. Southwestern Energy Co. (NYSE: SWN) is one of the largest U.S. natural gas producers. Its primary producing locations are in the Fayetteville region and the Marcellus Shale. The company has acquired acreage in southwest Appalachia, is exceeding expectations and provides a runway to growth.
The company’s estimated proved natural gas, oil and natural gas liquid reserves comprise 12,721 billion cubic feet of natural gas equivalent (Bcfe) and 929 Bcfe of proved undeveloped reserves. It also engages in marketing of natural gas, oil and natural gas liquids. Southwestern Energy serves energy companies, utilities and industrial purchasers of natural gas.
Goldman Sachs has set its price target at $5, but that may be ready to move higher. The consensus target is $5.24, and Southwestern Energy stock saw a nice pop on Friday to push it back over the $5 level.
These are five stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and Goldman Sachs has research coverage.