The Zacks Analyst Blog Highlights Granite Ridge Resources, Viper Energy Partners, Evolution Petroleum and Northern Oil and Gas
For Immediate Release
Chicago, IL – September 14, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Granite Ridge Resources, Inc. GRNT, Viper Energy Partners VNOM, Evolution Petroleum EPM and Northern Oil and Gas NOG.
Here are highlights from Wednesday’s Analyst Blog:
4 Stocks to Gain as Oil Prices Hit 2023 Highs
Optimism over a rise in demand for oil coupled with tightening of supply through output cuts has bolstered the price of oil.
With oil prices now hitting their highest level this year, stocks such as Granite Ridge Resources, Inc., Viper Energy Partners, Evolution Petroleum and Northern Oil and Gas are well-positioned to gain shortly.
Oil Prices Hit a Near 10-Month High
Brent crude, the global oil benchmark, increased 1.6% to $92.06 a barrel on Sep 12. The West Texas Intermediate (WTI) crude also settled 1.8% higher to $88.84 a barrel in the last trading session.
Both prices have now hit the highest level since November 2022, and have remained overbought for eight consecutive days. Oil prices scaled northward following bullish technical indications, and are now widely expected to reach $100-$102 a barrel soon.
What Led to the Rise in Oil Prices?
Oil prices scaled upward after the Organization of the Petroleum Exporting Countries (OPEC) recently said that the global oil demand is expected to remain robust amid tighter supply.
OPEC expects the demand for oil to increase by 2.25 million barrels per day (bpd) across the globe in 2024. OPEC expects oil demand to remain robust this year as well since major economies are expanding at an encouraging pace. By the way, an expansion in China’s manufacturing activity in August is expected to provide the country the wherewithal to import oil and boost demand.
The Energy Information Administration of the United States had said earlier that global crude oil stockpiles are projected to drop by nearly a half million bpd in the second half of this year, which in turn will push the price of Brent crude to around $93 a barrel in the fourth quarter.
Meanwhile, trimming of output by oil producers has also perked up oil prices lately. Russia is expected to curtail its oil exports by 300,000 barrels a day till the end of this year. Similarly, Saudi Arabia is aiming to extend its production cut of 1 million barrels a day for another three months till the end of December 2023.
How to Play Oil’s Northward Journey
Major oil producers and explorers, rig operators, and pipeline owners are all poised to witness an improvement in their profit margins as oil prices increase. We have, thus, highlighted four such stocks that have a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Granite Ridge Resources is a scaled, non-operated oil and gas exploration and production company.
The Zacks Consensus Estimate for its current-year earnings has moved up 6.9% over the past 60 days. The company’s expected earnings growth rate for next year is 9.7%. GRNT, presently, has a Zacks Rank #2.
Viper Energy Partners is an independent oil & gas exploration and production company.
The Zacks Consensus Estimate for its current-year earnings has moved up 44.2% over the past 60 days. The company’s expected earnings growth rate for next year is 2.7%. VNOM, currently, has a Zacks Rank #2.
Evolution Petroleum is a development-stage company formed to acquire and develop oil and gas fields.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 20.8%. EPM, presently, has a Zacks Rank #3.
Northern Oil and Gas is an independent upstream operator engaged in the acquisition, exploration, development and production of oil and natural gas properties.
The Zacks Consensus Estimate for its next-year earnings has moved up 2.5% over the past 90 days. The company’s expected earnings growth rate for the current year is 11.6%. NOG, currently, has a Zacks Rank #3.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report
Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report
Viper Energy Partners LP (VNOM) : Free Stock Analysis Report
Granite Ridge Resources, Inc. (GRNT) : Free Stock Analysis Report
