Energy stocks rebound as earnings show promise
- Hess and 4 other oil & gas companies poised for big earnings growth
- Energy stocks have been underperforming due to falling oil prices
- 2023 and 2024 expected to see stronger earnings for most energy names
- Barron’s screen reveals 5 companies with highest expected earnings growth
- Natural gas producers expected to benefit from rising prices and increased export capacity
- Hess set for fast growth with offshore drilling program and impending acquisition by Chevron
- Civitas Resources expanding into Permian Basin with projected 59% production growth
Energy stocks have been struggling in recent months due to falling oil prices, but the key to their rebound could be strong earnings. While most oil and gas companies are expected to post weaker earnings this year, 2023 and 2024 are projected to see stronger earnings for many energy names. Barron’s has identified five companies with the highest expected earnings growth between 2023 and 2024, including Hess, Antero Resources, EQT, Southwestern Energy, and Civitas Resources. These companies, particularly the natural gas producers, are expected to benefit from rising natural gas prices and increased export capacity. Hess, in particular, is on the cusp of very fast growth with its stake in a large offshore drilling program and an impending acquisition by Chevron. Civitas Resources is also expanding into the Permian Basin with a projected 59% production growth next year. Overall, these companies are poised for significant earnings growth and present promising investment opportunities in the oil and gas sector.
Factuality Level: 7
Factuality Justification: The article provides information about the performance of energy stocks, oil and gas earnings, and expected earnings growth for certain companies. It also mentions the factors that could impact natural gas prices in 2024. The information seems to be based on estimates and projections, which may not be entirely accurate. However, the article does not contain any obvious misleading information or bias.
Noise Level: 3
Noise Justification: The article provides relevant information about the performance of energy stocks and the factors affecting their earnings. It also highlights specific companies with potential earnings growth. However, there is some filler content at the beginning and the article lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the performance and earnings of oil and gas companies, which can impact the energy sector and related financial markets. Specifically, it mentions Exxon Mobil, Chevron, Antero Resources, Southwestern Energy, EQT, and Hess.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article focuses on the expected earnings growth of oil and gas companies, which is relevant to financial markets. There is no mention of any extreme events.
Public Companies: Hess (HES), Exxon Mobil (XOM), Chevron (CVX), Antero Resources (AR), EQT (EQT), Southwestern Energy (SWN), Civitas Resources (CIVI)
Key People: Andrew Harrer (Photographer)
Reported publicly:
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