The company explores for, develops and produces oil, NGLs and natural gas. It has operations in the Midland Basin in West Texas. As of December 31, 2021, the company had proved undeveloped reserves and proved developed non-producing reserves of 130 million barrels of oil, 92 million barrels of NGLs and 462 billion cubic feet of gas, and it owned interests in 11 gas processing plants.
Pioneer production services are supported by 100 well-servicing rigs, more than 100 cased-hole, open-hole and offshore wireline units, and a range of advanced coiled tubing units.
Pioneer is a huge player in the Permian basin and the Eagle Ford in Texas, and the company owns more than 20,000 locations in the world’s second-largest oil reservoir in the Midland Basin. With a stellar balance sheet, the company is poised to remain a top player in the Permian, as it expects to deliver solid production growth going forward.
The 11.2% dividend is stellar, but, again, it could be lower this year and may vary from quarter to quarter. Pioneer Natural Resources stock has a $264 target price at Goldman Sachs. The consensus target is $280.87, and Friday’s close was at $233.46.
Suncor Energy
This is another top Canadian energy play for investors to consider. Suncor Energy Inc. (NYSE: SU) operates as an integrated energy company and primarily focuses on developing petroleum resource basins in Canada’s Athabasca oil sands.
Suncor explores, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It also transports and refines crude oil, markets petroleum and petrochemical products primarily in Canada and markets third-party petroleum products.
With the North American majors pivoting more toward the Permian with potential free-cash-flow implications, the company does not expect its “industrial model” to change. The focus remains on reliable cash flow, steady capital allocation framework and top-tier cash returns. In addition, the company is trading at a discount to its historical multiple.
Shareholders receive a 4.86% dividend. The Goldman Sachs price objective is $38. The consensus target is $40.08 and Suncor Energy stock shares closed almost 4% higher on Friday at $31.37.
These six top exploration and production leaders and a top refiner could deliver solid total returns this year as they are in a sector that can once again overachieve in 2023. While the massive gains of the past two years are unlikely, given the repricing of oil over the past six months, the potential for a demand pick-up, especially from China, could provide a robust tailwind for these top companies.
Originally published at 24/7 Wall St.
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