Chesapeake Energy
This is a very safe energy stock for worried investors who feel the market may have a serious downdraft. Chesapeake Energy Corp. (NYSE: CHK) an independent exploration and production company focused on oil, natural gas and natural gas liquids (NGLs) from underground reservoirs in the United States.
The company holds interests in natural gas resource plays in the Marcellus Shale in the northern Appalachian Basin in Pennsylvania and the Haynesville/Bossier Shales in northwestern Louisiana, as well as the liquidsich resource play in the Eagle Ford Shale in South Texas.
As of December 31, 2021, it owned interests in approximately 8,200 gross productive wells, including 6,500 wells with working interest and 1,700 wells with an overriding or royalty interest, and it had estimated proved reserves of 661 million barrels of oil equivalents.
Chesapeake Energy stock comes with a 3.42% dividend, which is expected to be lifted to $0.55 a share from $0.48. Wolfe Research’s $111 price target is less than the $117.67 consensus target. The stock closed Friday’s trading session at $82.02.
Devon Energy
This stock may be offering one of the best value propositions among the Goldman Sachs picks and is utilizing the variable dividend strategy. Devon Energy Corp. (NYSE: DVN) is an independent energy company that primarily engages in the exploration, development and production of oil, natural gas and NGLs in the United States and Canada. It operates approximately 19,000 wells.
The company also offers midstream energy services, including gathering, transmission, processing, fractionation and marketing to producers of natural gas, NGLs, crude oil and condensate through its natural gas pipelines, plants and treatment facilities.
Production is weighted toward crude oil while growth opportunities are liquids focused, anchored by the Delaware Basin, SCOOP/STACK, Eagle Ford Shale, Canadian Oil Sands, and the Barnett. Devon also owns equity in the publicly traded midstream master limited partnership EnLink.
Devon Energy now pays investors a 6.88% dividend. That dividend is expected to rise to $1.15 a share from $1.00. Truist Financial has set a Wall Street high $91 target price, while the consensus target on Devon Energy stock is $74.79. Friday’s closing print was $58.17.
Diamondback Energy
This red-hot energy play has had a big run but looks poised to press even higher. Diamondback Energy Inc. (NASDAQ: FANG) is an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas and New Mexico.
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