Market Overview

Goldman's Energy Names To Buy And Sell

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 (NYSE: ENB), Enterprise Products Partners L.P. (NYSE: EPD), Energy Transfer Equity LP (NYSE: ETE), Plains All American Pipeline, L.P. (NYSE: PAA), Sunoco Logistics Partners L.P. (NYSE: SXL) and Western Refining Logistics LP (NYSE: WNRL).

In addition, Goldman likes companies with Marcellus and Utica exposure, including Kinder Morgan Inc (NYSE: KMI), Rice Midstream Partners LP (NYSE: RMP) and Williams Companies Inc (NYSE: WMB).

Avoid Canada

Goldman believes that U.S. natural gas companies will likely continue to displace Canadian names. They recommend selling TC PipeLines, LP (NYSE: TCP) and TransCanada Corporation (USA) (NYSE: 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 (NYSE: DPM), Linn Energy LLC (NASDAQ: LINE) and Targa Resources Partners LP (NYSE: 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 (NYSE: PAGP), Enterprise Products Partners L.P. (NYSE: EPD) and NuStar Energy L.P. (NYSE: NS).

Latest Ratings for ENB

Jul 2020RBC CapitalMaintainsOutperform
Jul 2020Wells FargoDowngradesOverweightEqual-Weight
Jul 2020Morgan StanleyUpgradesEqual-WeightOverweight

View More Analyst Ratings for ENB
View the Latest Analyst Ratings


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