Beyond Pioneer Natural Resources: 3 Top Oil Stocks to Buy After ExxonMobil's $60 Billion Acquisition.
Pioneer Natural Resources (NYSE: PXD) is one of the biggest oil and gas producers in the low-cost Permian Basin. Because of that, it has become a cash-flow-generating machine in recent years. That gave it the funds to continue drilling new wells while returning a large portion of its gushing cash flows to shareholders via dividends (base and variable) and share repurchases.
Unfortunately for investors, Pioneer Natural Resources will soon become part of ExxonMobil after the oil giant swooped in to buy the company in a more than $60 billion deal. However, those interested in cashing in on the Permian Basin have options beyond Pioneer Natural Resources. Three top choices with income and upside potential similar to Pioneer are Diamondback Energy (NASDAQ: FANG), Devon Energy (NYSE: DVN), and EOG Resources (NYSE: EOG).
Diamondback Energy is a pure play on the Permian Basin. Like Pioneer, it holds a meaningful position in the Midland Basin (322,000 net acres compared to 856,000 net acres owned by Pioneer). In addition, it has 146,000 acres in the Delaware Basin side of the Permian (where Exxon currently holds most of its acreage).
Source Fool.com
Diamondback Energy Stock
The stock is one of the favorites of our community with 59 Buy predictions and 1 Sell predictions.
With a target price of 189 € there is a slightly positive potential of 16.62% for Diamondback Energy compared to the current price of 162.06 €.
