BUZZ-Truist expects Q1 E&P earnings to decline sequentially

Reuters04-05

** Truist Securities says most exploration and production (E&P) companies are likely to post sequentially lower quarterly earnings/free cash flow in Q1

** "We anticipate only a few notable 1Q24 impacts such as materially weak Waha and other regional natural gas prices, January storms and occasional lower OFS costs" - brokerage

** Most E&Ps have ample near-term inventory and continue to operate in virtually the same areas as the prior year, likely resulting in minimal change to well productivity, says Truist

** "Based on YTD results, valuations and our expectations into Q1 earnings season, we favor lower cost/higher shareholder return E&Ps and a few with more torque such as Devon Energy

, Marathon Oil , Permian Resources , Chesapeake Energy , Gulfport Energy and Vital Energy , among others"

** Truist expects natgas companies to keep their output cuts in place for now, but are gearing up to increase production back to previous levels starting as soon as mid-year, unless there is another leg down in gas pricing

Following are some PT changes made by Truist

Company New PT Old PT

ConocoPhillips $170 $173

Chevron Corp $156 $168

Exxon Mobil Corp $146 $140

Chord Energy Corp $224 $229

APA Corp $53 $59

Devon Energy Corp $66 $69

EOG Resources $163 $165

Civitas Resources $103 $110

Inc

Diamondback Energy $248 $250

Inc

Pioneer Natural $278 $238

Resources

Chesapeake Energy $112 $119

Corp

(Reporting by Roshia Sabu in Bengaluru)

((Roshia.Sabu@thomsonreuters.com))

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