Goldman Sachs Top Energy Picks Have Big Upside and Pay Solid Dividends - 24/7 Wall St. S&P 5006,581.00 -0.16% Dow Jones46,183.50 -0.20% Nasdaq 10024,193.80 -0.13% Russell 20002,489.24 -0.23% FTSE 1009,908.80 -0.49% Nikkei 22552,775.50 -0.95% Investing Goldman Sachs Top Energy Picks Have Big Upside and Pay Solid Dividends By Lee JacksonPublished Mar 24, 7:20AM EDT This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. How ...

Core Insights - Permian Resources Corporation (PR) is an independent oil and gas company focused on the Permian Basin, utilizing advanced techniques for unconventional reserves and maintaining steady production growth while controlling costs [1] Financial Performance - In Q4 2025, PR reported adjusted net income per share of 37 cents, surpassing the Zacks Consensus Estimate of 28 cents and slightly improving from 36 cents in the previous year, driven by a 9% year-over-year increase in production volumes despite lower oil prices [2] Operational Efficiency - PR distinguishes itself through disciplined capital management and operational efficiency, focusing on low-cost drilling and prioritizing free cash flow and dividend growth [3] - The company successfully expanded its drilling inventory by approximately 200 locations in 2025, primarily in New Mexico, through organic inventory expansion [4] - PR reduced drilling and completion costs to approximately $700 per lateral foot in Q4 2025, a 14% reduction from 2024, with a target of $675 per foot for 2026 [5] Shareholder Returns - PR has shown a commitment to returning value to shareholders, recently increasing its quarterly base dividend by 7% to 16 cents per share for Q1 2026, with a compound annual growth rate of over 40% since its launch in 2022 [6] Market Performance - Over the past six months, PR shares have increased by 43.7%, outperforming the U.S. Oil & Gas Exploration & Production sub-industry's 17.5% return and the broader oil and energy sector's 27.6% appreciation, indicating strong investor confidence [7] Challenges and Risks - PR's assets are concentrated in the Permian Basin, making it vulnerable to basin-specific challenges such as infrastructure bottlenecks and regulatory changes [10] - A significant portion of the 2026 capital budget, approximately $400 million, is allocated to non-drilling activities, which may limit overall capital flexibility [11] - The company experienced a decline in realized prices for oil and natural gas, with oil averaging $58.78 per barrel in Q4 2025 compared to $69.66 in Q4 2024, impacting revenues [12] - Management's cautious growth approach for 2026 is influenced by macroeconomic and geopolitical uncertainties affecting oil prices [13] Conclusion - PR benefits from strong operational execution, organic inventory expansion, declining drilling costs, and rising shareholder returns, highlighting its efficiency and growth potential [14] - However, challenges such as reliance on the Permian Basin, significant non-drilling capital requirements, and declining realized commodity prices may constrain profitability [15]

60. It's time for the big three. I'm Alex Coffee in for Marley Kaden.I'm with Rick Dukat here, the lead market technician. We're also joined by Tammy Marshall of the Fibonacci process analyst and Elliot Wave trader. Tammy, good morning to you.Happy Tuesday. You got uh three stocks for us. Rick's got three charts, at least three charts, and we got some trade ideas as well.Um general market thought before we uh jump in here. Well, you know, I think we're in one of those places where um we're really trying to ...

Permian Resources Achieves Investment Grade Credit Ratings Mar 17, 2026 12:57 PM Eastern Daylight Time Permian Resources Achieves Investment Grade Credit Ratings Share MIDLAND, Texas--(BUSINESS WIRE)--Permian Resources Corporation ("Permian Resources†or the "Company†) (NYSE: PR) today announced that it is now rated investment grade by both S&P Global Ratings ("S&P†) and Fitch Ratings ("Fitch†), following today's upgrade from S&P and the Company's initial investment grade rating from Fitch in July 2025 ...

Core Viewpoint - Goldman Sachs identifies four energy stocks with double-digit upside potential and attractive dividends, appealing to both passive income and value-oriented investors as oil prices remain elevated due to geopolitical tensions [2][4][6]. Group 1: Market Context - Brent crude prices have surpassed $100, while West Texas Intermediate is approaching similar levels, leading to increased investor interest in energy stocks [1][4]. - The U.S. attack on Iran has contributed to rising oil prices, prompting a significant uptick in energy stock valuations [4]. Group 2: Investment Opportunities - Goldman Sachs has highlighted four energy companies that are not overbought and possess strong cash flows and rising dividends, making them appealing for investment [4][5]. - The selected companies are rated "Buy" and offer substantial upside relative to Goldman Sachs' price targets [6]. Group 3: Company Profiles - **Diamondback Energy (NASDAQ: FANG)**: Focused on hydrocarbon exploration in the Permian Basin, offering a 2.29% dividend with a price target of $212, indicating a 20% upside [8][9]. - **Ovintiv (NYSE: OVV)**: Engaged in oil and natural gas exploration across the U.S. and Canada, with a 2.20% dividend and a price target of $66, representing a 13% gain potential [10][13]. - **Permian Resources (NYSE: PR)**: Concentrated in the Delaware Basin, trading at 8.5 times earnings with a 3.15% dividend and a price target of $22, suggesting a 14% upside [14][15]. - **Viper Energy (NASDAQ: VNOM)**: Focused on mineral and royalty interests in the Permian Basin, offering a high dividend yield of 4.998% and a price target of $59, indicating a 35% potential gain [17][19].

Core Viewpoint - Permian Resources Corporation (NYSE:PR) is highlighted as a strong investment opportunity in the oil sector, with recent price target increases driven by geopolitical factors affecting oil supply [1][2]. Group 1: Price Target Adjustments - Piper Sandler raised the price target for Permian Resources Corporation from $24 to $27 while maintaining an Overweight rating, citing an increase in mid-cycle crude price forecast to $75 per barrel due to the Iran war [1]. - Earlier, on March 5, Piper Sandler had adjusted the price target from $20 to $24, also maintaining an Overweight rating, indicating that the Iran war has put 20% of global oil, product, and gas supply at risk [2]. Group 2: Company Overview - Permian Resources is an independent natural gas and oil company focused on acquiring, optimizing, and developing oil and natural gas properties, primarily located in the Delaware Basin across New Mexico and Texas [3].

Core Viewpoint - The disruption caused by the U.S.-Iran conflict has led to a spike in oil prices, positively impacting oil companies and making dividend-paying stocks attractive for investors [1]. Group 1: Chord Energy - Chord Energy (CHRD) returned approximately 50% of its adjusted free cash flow to shareholders in Q4 2025, with a base dividend of $1.30 per share and $10 million in share repurchases, resulting in an annualized dividend of $5.20 per share and a yield of 4.2% [3]. - UBS analyst Josh Silverstein reiterated a buy rating on Chord Energy, raising the price target from $119 to $142, citing rising energy prices amid geopolitical risks [4]. - Silverstein's revised price target reflects an increase in his multiple to 3.50-times from 3.25-times, justified by the company's inventory growth and improved capital efficiency [5]. - Chord Energy is positioned strongly in the Williston Basin and is expected to reduce leverage to below 0.5-times, enhancing capital returns from 50% to 75% of adjusted free cash flow [6][7]. Group 2: Permian Resources - Permian Resources (PR) announced a quarterly base dividend of 16 cents per share, with a dividend yield of about 3.2% [8]. - RBC Capital analyst Scott Hanold reiterated a buy rating on Permian Resources, increasing the price target from $18 to $20, noting strong operational and financial results [9]. - The company is expected to achieve oil production in the upper half of the 186 to 192 Mb/d range, reflecting a 4% year-over-year increase, while capital expenditures are projected to decrease by 6% year-over-year [11]. - Hanold emphasized the company's focus on natural gas commercialization, which has reduced exposure to low WAHA gas prices, and highlighted balance sheet flexibility for opportunistic buybacks and acquisitions [12]. Group 3: EOG Resources - EOG Resources (EOG) generated $4.7 billion in free cash flow in 2025, returning 100% to shareholders through dividends and $2.5 billion in share repurchases, with a declared dividend of $1.02 per share and a yield of 3.1% [14]. - Jefferies analyst Lloyd Byrne reiterated a buy rating on EOG Resources with a price target of $146, noting it as the best-performing large-cap oil company post-Middle East conflict [15]. - Byrne highlighted management's insights on production stabilization and capital efficiency opportunities, particularly in the New Mexico shallower zone, which has shown improved well productivity [16][18].

Core Viewpoint - The article discusses the current state of the oil market and highlights the best oil stocks to invest in, emphasizing the impact of geopolitical tensions, particularly the conflict in Iran, on oil prices and stock performance [2][3][4]. Industry Insights - The conflict in Iran is causing significant disruptions in oil supply, with 20% of global oil, product, and gas supply at risk, leading to increased pressure on oil prices [10]. - Analysts are raising their price forecasts for crude oil due to the ongoing conflict, with Piper Sandler increasing its mid-cycle crude price forecast to $75 per barrel from $70 [8][9]. - The market is currently underestimating the cash flow benefits for exploration and production companies, which could lead to stronger returns as oil prices rise [12][13]. Company Highlights - **Permian Resources Corporation (NYSE:PR)**: Received a price target increase from Piper Sandler to $27 from $24, maintaining an Overweight rating. The company is focused on acquiring and developing oil and natural gas properties, primarily in the Delaware Basin [8][11]. - **EOG Resources, Inc. (NYSE:EOG)**: Barclays raised the price target to $140 from $133, while UBS increased it to $158 from $149. Both firms believe that the market is underpricing the potential cash flow benefits from prolonged geopolitical tensions [12][13][14].

Core Viewpoint - Permian Resources Corporation (NYSE:PR) is recognized as one of the best oil and gas dividend stocks to invest in currently, despite a recent downgrade from 'Buy' to 'Hold' by Benchmark due to its stock performance exceeding previous targets [1][3]. Group 1: Company Overview - Permian Resources Corporation is an independent oil and natural gas company focused on developing crude oil and associated liquids-rich natural gas reserves in the United States [2]. Group 2: Financial Performance - In Q4 2025, the company achieved record operational metrics, including the highest oil production of 188,600 barrels per day (bpd) and total production of 401,500 barrels of oil equivalent per day (boepd) [4]. - The company generated adjusted free cash flow of $1.6 billion for the full year 2025, marking a 20% increase from the previous year [5]. - Following this financial success, the company raised its quarterly dividend by 7% to $0.16 per share on February 26 [5]. Group 3: Future Outlook - Permian Resources Corporation aims to increase production by 5% in 2026 compared to 2025 while reducing capital expenditures (CapEx) by $120 million to a total of $1.85 billion [5].

Core Insights - Permian Resources Corporation (NYSE:PR) reported an 18% year-over-year increase in free cash flow per share to $1.94 for 2025, driven by a successful business model in the Delaware Basin [1] - The company exceeded its oil production guidance by 5%, averaging 188.6 thousand barrels of oil per day in Q4 [1] - The strategy for 2026 includes a 5% increase in total production while reducing capital expenditures by $120 million, with a target to lower drilling & completion (D&C) costs to $675 per foot, a 20% decrease from 2024 levels [2] Financial Performance - Free cash flow per share reached $1.94, marking an 18% increase year-over-year [1] - D&C costs dropped to a record low of $700 per foot in 2025, with expectations to further reduce to $675 per foot in 2026 [2] Production and Strategy - The company averaged 188.6 thousand barrels of oil per day in Q4, exceeding production guidance by 5% [1] - Permian Resources aims for a 5% increase in total production in 2026 despite a significant reduction in capital expenditures [2] Acquisitions and Growth - In 2025, the company closed approximately 700 transactions totaling $1.1 billion, adding 250 high-rate-of-return locations [3] - This acquisition strategy has allowed the company to acquire more inventory than it drilled for the third consecutive year [3] Operational Focus - The company primarily develops crude oil and associated liquids-rich natural gas reserves in the Delaware Basin, a sub-basin of the Permian Basin [4] - New midstream agreements are expected to shift gas realizations from a $0.4 discount to a $0.5 premium relative to Waha benchmarks in 2026, addressing regional infrastructure constraints [2]