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Goldman Cuts Brent Forecasts (And Gives E&P M&A Ideas)

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The investment bank issued a broad swatch of comments on the global oil sector.

Aside from numerous downgrades, Goldman Sachs is also fearful of regional oil performance in China, Austria and the Association of Southeast Asian Nations (ASEAN).

One special bit that sticks out is the estimation from Goldman for asset quality appeal to potential buyers of E&P:

Also of note, Whiting Petroleum Corp (NYSE: WLL) is the only stock -- in Goldman Sachs' view -- that has all three favorable qualities in its M&A screen: Attractive M&A returns, free cash and asset quality.

Newfield Exploration Co. (NYSE: NFX), Marathon Oil Corporation (NYSE: MRO), PDC Energy Inc (NASDAQ: PDCE), Hess Corp. (NYSE: HES), Oasis Petroleum Inc. (NYSE: OAS) and a handful of others are stocks the bank says has two of three favorable conditions.

Latest Ratings for WLL

DateFirmActionFromTo
Dec 2016Wells FargoDowngradesOutperformMarket Perform
Dec 2016Stifel NicolausUpgradesHoldBuy
Nov 2016KeyBancMaintainsOverweight

View More Analyst Ratings for WLL
View the Latest Analyst Ratings

Posted-In: Brent E&P M&A Goldman SachsAnalyst Color Commodities Markets Analyst Ratings

 

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