The Organization of the Petroleum Exporting Countries (OPEC) announced Sunday that it will be staying with its announced production quotas and will keep them in place at least until the summer of 2023. The group of 13 countries had announced in November a reduction of these quotas by a combined 2 million barrels per day, which industry analysts have noted amounted to an effective production cut of 1 million barrels per day.
When you combine that with the potential for a new Covid policy and a reopening of China, where enforced draconian lockdowns caused massive protests, you may have all the ingredients in place for a large price spike in crude oil. The black gold is down close to 40% from highs printed last summer, and some top industry leaders think that prices could be headed back to the $100 range.
Given that energy is the only sector that has shown any strength this year, and many of the top stocks have all backed up from their summertime highs, we screened our 24/7 Wall St. energy research database looking for the Buyated stocks that are best values with the biggest dividends. Six stocks hit our screen, but it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Coterra Energy
This company was formed by the closing of the $17 billion merger of Cabot Oil & Gas and Cimarex Energy in 2021. Coterra Energy Inc. (NASDAQ: CTRA) is an independent oil and gas company engaged in the development, exploration and production of oil, natural gas and natural gas liquids (NGLs) in the United States. It primarily focuses on the Marcellus Shale, with approximately 177,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania.
The company also holds Permian Basin properties with approximately 306,000 net acres and Anadarko Basin properties located in Oklahoma with approximately 182,000 net acres. In addition, it operates natural gas and saltwater disposal gathering systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies and power generation facilities.
As of December 31, 2021, it had proved reserves of approximately 2,892,582 thousand barrels of oil equivalent, which include 189,429 thousand barrels of oil and other liquid hydrocarbons, 14,895 billion cubic feet of natural gas and 220,615 thousand barrels of natural gas liquids.
Shareholders receive a 9.13% dividend. Stifel has a $40 target price on Coterra Energy stock. The consensus target is $36.13, and shares closed on Monday at $26.20.
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