Goldman's Energy Names To Buy And Sell

Goldman Sachs’ energy team released a new report this week, and the report included analysts’ recommended buys and sells in the energy sector. Here’s a breakdown of what Goldman had to say.
Midstream MLPs
Analysts believe that many midstream MLP names currently offer attractive valuations. Goldman sees continuing strong U.S. crude oil production growth of up to 700kbpd annually, and sees this production driving “liquids-levered midstream infrastructure demand.” Goldman likes gas/NGL midstream names with Permian/Bakken/Eagle Ford exposure. They recommend buying Enbridge Inc ENB, Enterprise Products Partners LP EPD, Energy Transfer Equity LP ETE, Plains All American Pipeline LP PAA, Sunoco Logistics Partners LP SXL and Western Refining Logistics LP WNRL.
In addition, Goldman likes companies with Marcellus and Utica exposure, including Kinder Morgan Inc KMI, Rice Midstream Partners LP RMP and Williams Companies Inc WMB.
Avoid Canada
Goldman believes that U.S. natural gas companies will likely continue to displace Canadian names. They recommend selling TC PipeLines LP TCP and TransCanada Corp TRP.
Avoid commodity exposure
Goldman predicts long-term weakness in oil and gas prices and sees risk exposure in many names that are reliant on commodity prices. Goldman recommends selling DCP Midstream Partners LP DPM, Linn Energy LINE and Targa Resources Partners LP NGLS.
Export plays
Finally, Goldman believes that crude oil midstream players would be major beneficiaries of a potential removal of the U.S. crude oil export ban. Analysts recommend buying Plains GP Holdings LP PAGP, Enterprise Products Partners LP EPD and NuStar Energy LP NS.