Oil and Gas Sector Looking Stronger - CreditSights

CreditSights has raised its earnings estimates for oil and gas companies, based on a revised assumption of $106-a-barrel oil and other recent developments.

Among integrated companies, Hess (NYSE: HES) and Murphy Oil (NYSE: MUR) post the biggest increases given their heavier weighting in Exploration and Production over Refining, versus ConocoPhillips (NYSE: COP) and Marathon Oil (NYSE: MR) driven both by the weak Refining outlook as well as production delays.

In the E&P group, earnings estimates have risen the most for Anadarko (NYSE: APC), EOG Resources (NYSE: EOG), and Pioneer (NYSE: PXD) “driven both by our higher commodity price deck as well as increased production guidance.” Estimates for Newfield Exploration (NYSE: NFX) and Chesapeake Energy (NYSE:CHK) rise the least, given ineffective hedging positions at significantly lower price points.

We continue to view the sector as a strong defensive play and expect strong financial results even at our conservative price deck.

Detailed estimates by company are available in the CreditSights report Oil & Gas: Raising 2008 Estimates for the Integrateds and E&P.

Comments

[Bear Stocks...:]

Virtually all of our top ranked ETFs are energy & commodity plays. These include DBE, OIL, DBC, GSP and XME. If you prefer individual stocks, the best bets now include REXX, MOS, AGU, POT and EAC. In the mood for short-selling in this manic market? Check out CTX, JPM, CAL, WFC and REGN. Visit our website for more info.

2008 Jun 12 09:11 AM

[mixter:]

Get rid of the "dim-wit-o-craps" and "RINO'S" who are opposing drilling in ANWAR and the outer continental shelf, plus deriving oil from shale on federal lands. Their opposition to nuclear and coal fired electric generation plants is stupid, but then fools are not known for their intellect! Global warming may be occurring but it is due to mother nature. Sun spots (hydrogen flares on the sun) are mainly responsible for the earth's temperature. Water vapor is the main "green house"gas. What can mere man do about this? Nothing, except to utilize pseudo science so snakes like Al Gork can get rich off preying on dumb people.

2008 Jun 13 09:41 AM