Market Overview

Morgan Stanley's Pre-Earnings Outlook For 8 Oil Stocks


In a recent report, Morgan Stanley analysts updated their outlooks for eight oil exploration and production stocks. Here’s what they had to say:

Anadarko Petroleum Corp (NYSE: APC)

Analysts predict Q4 production will come in at the high end of their guidance range.

Rating: Overweight

Price Target: $91

Apache Corporation (NYSE: APA)

Analysts believe that Apache will drastically reduce drilling plans from the levels discussed on Analyst Day in November.

Rating: Equal-weight

Price Target: $66

California Resources Corp (NYSE: CRC)

Analysts predict that the company’s extreme leverage will become an issue in 2015 and that capex will be reduced by 50 percent.

Rating: Underweight

Price Target: $3

ConocoPhillips (NYSE: COP)

Analysts see falling crude oil prices more than offsetting any benefits of production increases.

Rating: Equal-weight

Price Target: $65

Related Link: How Hershey Is Sharpening Morgan Stanley's Sweet Tooth

Devon Energy Corp (NYSE: DVN)

Analysts predict only a 2 percent reduction in capex for the company in 2015 versus an average 29 percent capex cut for the sector.

Rating: Equal-weight

Price Target: $60

EOG Resources Inc (NYSE: EOG)

Despite the company’s “best in class” asset base, analysts see the company falling short of consensus earnings estimates and drastically reducing its spending moving forward.

Rating: Equal-weight

Price Target: $86

Hess Corp. (NYSE: HES)

Analysts predict that the company will reduce its 2015 budget by about 40 percent, focusing heavily on cuts to higher-cost Bakken production.

Rating: Equal-weight

Price Target: $66

Marathon Oil Corporation (NYSE: MRO)

Analysts believe that the company will announce 35 percent year-over-year capex reduction, 16 percent below the midpoint of their previous guidance in December 2014.

Rating: Equal-weight

Price Target: $25

Morgan Stanley analysts are looking to Hess as as a bellwether for the group, as it is the first to announce Q4 earnings on January 28.

Latest Ratings for APC

May 2019Seaport GlobalDowngradesBuyNeutral
May 2019Cowen & Co.DowngradesOutperformMarket Perform
May 2019Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for APC
View the Latest Analyst Ratings

Posted-In: Bakken Morgan StaneyAnalyst Color Long Ideas Price Target Analyst Ratings Trading Ideas


Related Articles (APA + APC)

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GRPNMorgan StanleyMaintains1.5
HMSYCantor FitzgeraldReiterates33.0
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