EOG Resources, SM Energy 'key ideas' as KeyBanc initiates 13 E&P stocks
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EOG Resources (NYSE:EOG) and SM Energy (NYSE:SM) are touted as key ideas in the respective large-cap and small-midcap energy space at KeyBanc, which initiated 13 exploration and production stocks on Tuesday alongside a bullish oil macro backdrop and a "very bullish long-term outlook" for U.S. natural gas.
KeyBanc's Tim Rezvan said EOG Resources (EOG) boasts an "impressive balance sheet providing a true growth and income value proposition," while SM (SM) offers "a compelling example for prudent and measured deployment of free cash flow amid heightened commodity prices."
Rezvan launches Diamondback Energy (NASDAQ:FANG) at Overweight, citing the company's "a long runway of core inventory across both flanks" of the Permian Basin and "unparalleled drilling economics from its ownership of royalties via Viper Energy Partners."
Also started at Overweight: (CIVI), (CRK), (DEN), (MGY), (MTDR), (PXD), (SBOW).
Launched at Sector Weight: (CPE), (GPOR), (PDCE)
EOG Resources (EOG) recovered remarkably from its July lows, but the stock's buying upside likely has stalled, JR Research writes in a bearish analysis published recently on Seeking Alpha.