Scorn for governmental sluggishness in greenlighting liquefied natural gas(LNG) ventures resonated through JPMorgan Chase‘s CEO, Jamie Dimon, as he decried political obstructions inflaming oil and gas stalemates. The contentious backdrop did not deter the Biden administration, which greenlit 48 billion cubic feet of export capacity, quadrupling the current exports. However, the move left many apprehensive.
A groundswell reaction from 35 European politicians berated the halting of projects for imperilling international accord, urging more energy collaboration. Even staunch U.S. allies in Asia, such as Japan and South Korea, are hedging bets, scouting for alternative LNG suppliers in the shadow of erratic U.S. supplies.
Unperturbed by market perturbations, JPMorgan’s analysts have scoped out bullish prospects among natural gas stocks to weather the storm of supply disruptions.
Antero Resources (AR) – Fueling Optimism Amidst Uncertainties
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Standing tall among the stormy clouds, Antero Resources (NYSE:AR) gleams with promise, snagging a “Buy” rating from analyst Arun Jayaram. His increased price target of $32 uncovers an upside potential of 10.88% amid the volatility.
Setting a goalpost for 2024, AR envisions robust production figures, eyeing an average of 3.3 billion to 3.4 billion cubic feet equivalent per day (Bcfe/d), boasting a substantial liquid production slice. Amid its detailed trajectory for the year, AR projects a net natural gas production of 2.155 to 2.165 billion cubic feet per day (Bcf/d).
Financially, AR’s fourth quarter of 2023 was a crescendo, with daily natural gas equivalent production averaging 3.4 Bcfe/d. A melodious tune to investors, this performance entailed 190,000 barrels per day (Bbl/d) of liquid output.
In the tumult of the market, AR appears as a sturdy vessel for investors, weathering the tempests with steely determination.
Targa Resources (TRGP) – Navigating the Seas of Financial Success
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Weathered investor, analyst Jeremy Tonet’s steadfast conviction in Targa Resources (NYSE:TRGP) shines through his “Buy” rating, accompanied by a raised price target of $125, denoting an 11.83% surge as of March 6.
In TRG’s financial forecast for 2024, the ship seems set for steady seas, with anticipated adjusted EBITDA oscillating from $3.7 billion to $3.9 billion. The company plots a course dotted with substantial capital expenditures, eyeing a range of $2.3 billion to $2.5 billion for growth capital deployment.
Committing to maintaining their leverage ratio within the three to four times target bracket by year-end, TRGP pledges to allocate 40% to 50% of cash flow from operations to equity holders. This gesture includes a proposed 50% surge in the annual dividend per share, alongside the continuance of their share buyback initiative.
With analysts on a harmonious note, TRGP’s blossoming EPS projections croon a melodic 49% increase, resonating with the investors’ ears.
Gulfport Energy (GPOR) – Navigating the Unchartered Waters
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Sailing through the choppy waters, Gulfport Energy (NYSE:GPOR) finds solace in analyst Zach Parham’s unwavering ‘Buy’ rating. Propping up the sails, he hoisted the price target from $156 to $167, marking a 9.29% lift by April 15.
In the annals of 2023, GPOR’s production stood firm at around 1,054 million cubic feet equivalent (MMcfe) per day, predominantly constituted of natural gas. Their financial voyage saw them commit $443.4 million to various drilling and completion activities. The company’s unfurled their common stock repurchase program, reclaiming roughly 4.5 million shares at an outlay of about $413.6 million.
Peering towards the horizon, GPOR steers its vessel with a 2024 projection anchoring daily production between 1,045 to 1,080 MMcfe, with natural gas forming 92% of the ensemble. Budgeting between $380 million and $420 million for capital ventures, GPOR charts a course destined for growth.
GPOR’s future, peppered with buybacks, paints a compelling narrative for investors eager to partake in the natural gas saga that continues to unfold, positioning Gulfport Energy as a beacon to weather the uncertainties.
As of the publication date, Matthew Farley holds no positions in the securities discussed. The opinions articulated here adhere to the InvestorPlace.com Publishing Guidelines.
