Goldman Sachs Says To Buy These 4 Best Oil Stocks With Huge Upside Potential In 2022 – 24/7 Wall St.

Energy company

After rebounding sharply from 2020 lows, the spot price of oil has risen significantly. In fact, after peaking in 2021 at $ 75.26 per barrel for West Texas Intermediate (WTI), the spot price fell back to $ 62.14 on August 20, a steep drop of 20%. As prices rallied and WTI traded at the $ 68 level on Wednesday, many leading stocks retreated and offer investors seeking energy exposure exceptional entry points.

A new research report from Goldman Sachs focuses on companies without coverage of their production. Large oil companies will often sell futures contracts at levels where they are ready to deliver oil. They also protect their hike with hedges below the current price in the event of a massive sale. Those without hedging have no downside protection per se, but they can reap all the benefits, and with prices close to the $ 70 level, they are making strong profits and generating cash flow. available.

The Goldman Sachs report noted this:

Investors continue to focus on producers who are on track to generate attractive free cash flow that can drive attractive cash returns to shareholders over time. Specifically, with the second quarter 2021 results, investors seemed focused on the exploration and production companies most exposed to a potential rise in gas prices until 2022. In our baseline scenario, we highlight stocks quoted for purchase without oil hedging and exposed to our bullish outlook for the price of oil in 2022.

Although all four stocks presented are rated Buy, it is important to remember that no analyst report should be used as the sole basis for any buy or sell decision.

ConocoPhillips

This large-cap company delivers high value to investors and reports earnings tomorrow. ConocoPhillips (NYSE: COP) explores, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas and natural gas liquids (NGLs) around the world.

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Felix J. Dixon