The company owns, operates, develops and acquires midstream infrastructure assets, including 770 miles of crude oil gathering pipelines, natural gas gathering pipelines and an integrated water system in the Midland and Delaware Basins.
Diamondback Energy stock comes with a 6.98% dividend, which is of the variable variety, which means it could change depending on production and profits. A $202 target price accompanies Piper Sandler’s Overweight rating. The consensus target is $173.81, and Friday’s close was at $130.22.
Exxon Mobil
This mega-cap energy leader trades at a reasonable valuation and still offers investors an excellent entry point. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.
Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.
Top Wall Street analysts expect Exxon to remain a key beneficiary in this higher oil price environment, and most remain strongly positive about the company’s sharp positive inflection in capital allocation strategy, upstream portfolio, and leverage to a further demand recovery, with Exxon Mobil offering greater downstream/chemicals exposure relative to peers.
Exxon Mobil reported a record first-quarter profit that was more than double from a year ago and topped Wall Street estimates, as rising oil and gas output overcame a pullback in energy prices from high levels.
Investors receive a 3.44% dividend. Exxon Mobil stock has an Overweight rating and a $145 price target at Piper Sandler. That compares with a $123.83 consensus target and Friday’s close at $106.26.
Occidental Petroleum
Over the past year, Berkshire Hathaway has been scooping up shares of this company, as we noted. Occidental Petroleum Corp. (NYSE: OXY) engages in the acquisition, exploration and development of oil and gas properties in the United States, the Middle East, Africa and Latin America.
The company’s Oil and Gas segment explores for, develops, and produces oil and condensate, NGLs and natural gas. The Midstream and Marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, carbon dioxide and power. This segment also trades around its assets, consisting of transportation and storage capacity, and it invests in entities.
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