RBC cuts US oil and gas firms' PTs on price volatility

Civitas Resources

02/10/2024 12:40

** RBC Capital Markets lowers price targets on U.S.-based
oil and gas companies amid commodity price volatility
    ** Says the instability in pricing is the main focus for
some investors who see a potential in buying undervalued energy
stocks, while others are waiting for more clarity
    ** Sees more companies focusing on free cash flow (FCF)
returns in the form of stock buybacks given reduced equity
valuations and general investor preference as compared to
variable dividends
    
    Brokerage changes PT on the following firms:
 Company               New PT      Old PT      Upside to
                                               stock's
                                               last close
 APA Corp  APA.O       $34         $41         32.5%
 Chord Energy Corp     $185        $200        42%
  CHRD.O                                       
 Civitas Resources     $70         $90         35.2%
  CIVI.N                                       
 ConocoPhillips        $135        $140        23.4%
  COP.N                                        
 Devon Energy Corp     $50         $57         23%
  DVN.N                                        
 Diamondback Energy    $210        $220        18.3%
  FANG.O                                       
 EOG Resources         $145        $147        14.2%
  EOG.N                                        
 Marathon Oil Corp     $34         $36         23.1%
  MRO.N                                        
 Matador Resources Co  $70         $75         39%
  MTDR.N                                       
 Northern Oil and Gas  $43         $46         18.1%
  NOG.N                                        
 Permian Resources     $17         $20         23.1%
 Corp  PR.N                                    
 Range Resources Corp  $35         $39         13.3%
  RRC.N                                        
 SM Energy Co  SM.N    $50         $54         21%
 
    
    

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))