Goldman Sachs adds EQT, Coterra to its oil and gas 'winners'

Frontier Services

18/11/2021 12:19

** Goldman Sachs upgrades its oil and gas stocks framework,
adds Coterra Energy  CTRA.N  and EQT Corp  EQT.N , excludes
Devon Energy Corp  DVN.N 
    ** GS also raises PT for EQT, Diamondbank Energy  FANG.O 
    ** In September, it highlighted FANG, Pioneer Natural
Resources  PXD.N  and DVN as "winners"
    ** In a note on Thursday, GS says PXD's near-term capital
returns, resource quality are underappreciated and shares could
re-rate with greater confidence
    ** GS sees EQT stock trading at a discount to its free cash
flow potential; raises PT to $28 from $27.5 
    ** GS expects FANG shares to outperform as the co narrows
the discount to peers; expects payout to rise as FANG's balance
sheet improves, and hikes PT to $137 from $130
    ** Says CTRA's merger with Cimarex Energy  XEC.N  materially
reduces key investor concerns  urn:newsml:reuters.com:*:nL4N2QV42P
    ** Says PXD, FANG, CTRA, EQT offer positive asset quality
exposure, favorable capital returns, compelling value despite
macro commodity headwinds; "We see potential for shares to award
greater longer-term resource value next year" - GS
    ** DVN up 175% YTD versus FANG's 122%, PXD's 58%, EQT's 68%,
and CTRA's 30% gains

 (Reporting by Anisha Sircar in Bengaluru)
 ((Anisha.Sircar@thomsonreuters.com;))