Mizuho sees limited upside in oil and gas prices in 2024

Civitas Resources

03/01/2024 18:26

** Brokerage Mizuho Securities sees oil and natural gas
prices trading in relatively tight ranges in 2024
    ** Adds Chevron  CVX.N , Coterra Energy  CTRA.N  and Civitas
Resources  CIVI.N  as top picks
    ** Prefers oil-leveraged stocks as it expects a relatively
balanced oil supply-demand in 2024 vs. gas-leveraged stocks
given their downbeat nat gas outlook 
    ** "A potential delay in LNG export capacity buildout into
2025 suggests weakness in gas prices will be sustained for much
of 2024 until inventory levels come down" - Mizuho
    ** Mizuho cut CVX's price target to $187 from $195; says
improved productivity in the Permian and successful execution on
integrating Hess Corp  HES.N  post-acquisition are key in
boosting investor confidence 
      
 Company                   New PT    Old PT    Rating
 APA Corp  APA.O           $36       $42       Underperform
 Chevron  CVX.N            $187      $195      Buy
 ConocoPhillips  COP.N     $132      $139      Neutral
 Coterra Energy  CTRA.N    $35       $42       Buy
 Diamondback Energy        $178      $197      Buy
  FANG.O                                       
 EOG Resources  EOG.N      $138      $150      Buy
 EQT Corp  EQT.N           $46       $52       Buy
 Exxon Mobil  XOM.N        $177      $133      Neutral
 Hess Corp  HES.N          $172      $178      Neutral
 Marathon Oil  MRO.N       $28       $31       Neutral
 Marathon Petroleum        $159      $166      Neutral
  MPC.N                                        
 Occidental Petroleum      $63       $72       Neutral
  OXY.N                                        
 Phillips 66  PSX.N        $135      $116      Neutral
 Valero Energy  VLO.N      $150      $159      Neutral
 
 (Reporting by Vallari Srivastava)
 ((Srivastava.Vallari@thomsonreuters.com;))