** 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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