The United States Energy Information Administration (EIA) estimated in its short-term energy outlook report that 98.90 million b/d of petroleum and petroleum and liquid fuels were consumed internationally in October, which is about 4.50 million b/d greater than October 2020. Furthermore…
EIA predicts that global consumption of petroleum and liquid fuels will increase by 3.30 million b/d in 2022.
For the first nine months of this year, the 24 most significant oil and gas companies posted a combined profit of $174 billion. They also registered a $74 billion profit in the third quarter alone, due to skyrocketing gasoline prices. Following a short dip, oil prices rebounded by $2 on December 7, with Brent Crude futures climbing 2.7% to $75.05 per barrel, and West Texas Intermediate up 3.2% to $71.74 per barrel, on easing omicron concerns and the stalling of Iran’s nuclear talks.
Given this backdrop, we think it might be reasonable to bet on cheap oil and gas stocks Crescent Point Energy Corp. (CPG – Get Rating) and TransGlobe Energy Corporation (TGA – Get Rating), which Wall Street analysts predict will rally by more than 25% in the near term.
CPG, which is headquartered in Calgary, Canada, explores for, develops, and produces light and medium crude oil natural gas reserves in Saskatchewan, Alberta, British Columbia, and Manitoba in Canada, and North Dakota and Montana in the United States.
On December 6, CPG reported its formal 2022 capital expenditures budget and production guidance and announced a quarterly dividend increase in its next fiscal year’s first quarter. The company also plans to execute share repurchases and renew its credit facilities. CPG expects to generate strong returns and return significant cash flow to shareholders.
CPG’s revenues and other income increased 69.4% year-over-year to CAD636.40 million ($497.24 million) in its third fiscal quarter, ended September 30. Its adjusted net earnings from operations and its per-share value came in at CAD142.60 million ($111.42 million) and CAD0.24, respectively, up 100.8% and 84.6% from the same period last year.
The Street’s $0.17 EPS estimate for the current quarter (ending December 2021) reflects a 64.4% year-over-year increase. And the Street’s $702.05 million revenue estimate for the current quarter indicates a rise of 96.1% from the prior-year quarter.
The stock has gained 130.6% in price over the past year and 106% year-to-date to close yesterday’s trading session at $4.82.
Of the seven Wall Street analysts rating CPG, five have rated it Buy, while two have rated it Hold. The 12-month median price target of $6.21 indicates a 28.8% potential upside. The price targets range from a low of $2.73 to a high of $9.00.
CPG’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
CPG has an A Momentum grade, and a Growth, Value, and Quality grade of B. In the 49-stock Foreign Oil & Gas industry, it is ranked #16. The industry is rated A. Click here to see the additional POWR Ratings for CPG (Stability and Sentiment).
TGA and its subsidiaries acquire, explore, produce, and develop crude oil and natural gas in Egypt and Canada. It holds 100% working interests in four production sharing concessions (PSCs) in…
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