CHICAGO, Feb. 8, 2012 /PRNewswire/ -- Today, Zacks Equity Research discusses the Oil & Gas, including Chevron Corp. (NYSE: CVX), PetroChina Company Limited (NYSE: PTR), Halliburton Company (NYSE: HAL), Denbury Resources Inc. (NYSE: DNR) and Sasol Ltd. (NYSE: SSL).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
A synopsis of today's Industry Outlook is presented below. The full article can be read at
http://www.zacks.com/stock/news/69253/Oil+and+Gas+Stock+Outlook+-+Feb.+2012
In this current turbulent market environment, we advocate the relatively low-risk energy conglomerate business structures of the large-cap integrateds, with their fortress-like balance sheets, ample free cash flows even in a low oil price environment and growing dividends. Our preferred name in this group remains Chevron Corp. (NYSE: CVX).
Its current oil and gas development project pipeline is among the best in the industry, boasting large, multiyear projects. Additionally, Chevron possesses one of the healthiest balance sheets among peers, which helps it to capitalize on investment opportunities with the option to make strategic acquisitions.
The current oil price environment should also benefit producers, particularly those international players having attractive growth opportunities in their home markets. One such standout name is PetroChina Company Limited (NYSE: PTR), which remains well-placed to benefit from the country's growing appetite for energy and the turnaround in commodity prices. PetroChina -- one of two Chinese integrated oil companies -- is poised to capitalize from the country's impressive economic growth that has significantly increased its demand for oil, natural gas and chemicals.
Within the oilfield services group, we like
Halliburton Company(NYSE: HAL). We are a fan of the Houston, Texas-based player's leading position in the global oilfield services market, its broad and technologically-complex product/service offerings, and its robust financial profile. The company has been benefiting from increased activity in the unconventional shale plays in North America, which has more than made up for the drop in deepwater Gulf of Mexico activity and disruptions in North Africa.
Denbury Resources Inc. (NYSE: DNR), a leading CO2 'Enhanced Oil Recovery' (EOR)-focused company targeting a large attractive market, is also a top pick. With its unique profile, compelling economics and an unmatched infrastructure, Denbury is nicely positioned to deliver long-term sustainable growth. Additional positives for Denbury include a strong financial position, low-risk investments and an active divestment policy.
Further, we remain optimistic on the near-term prospects of South African petrochemicals group
Sasol Ltd.(NYSE: SSL). We like Sasol for its diverse portfolio of assets that produce a wide array of chemical and liquid fuels. The company specializes in gas-to-liquids (GTL) and coal-to-liquids (CTL) technologies, which convert natural gas and coal to diesel and other liquid fuels.
Recently, these technologies have been attracting attention because they provide an alternative to traditional oil. Additionally, Sasol's deleveraged balance sheet and strong cash position keeps the group well-equipped to weather the global economic storm and fund its growth program in tough credit markets.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4581.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
Share this article