Name: Nextera Energy Partners
Market Cap: $1.76 billion
Recent Price: $32.55
Price Target: $40
Credit Suisse analyst Andrew Hughes thinks Nextera Energy Partners (NEP) is the "premier vehicle to own, operate, and acquire long-term contracted renewable energy assets in order to pay a steady and growing dividend."
"The company has the lowest risk and longest duration growth outlook, which makes it best positioned among peers given a more uncertain U.S. renewable policy outlook and rising interest rates," Hughes wrote in a note to investors. "Our $33 Target Price reflects our view that NEP's growth prospects will appear as attractive in 2020 as they do today."
Market Cap: $9.3 billion
Recent Price: $80.04
Price Target: $110
Credit Suisse analyst Ed Westlake thinks Tesoro (TSO) has been working to improve its refining business and has other factors going for it that could give it nearly 35% upside from current levels.
"TSO has been assertively improving its refining business, diversifying/adding to logistics, looking to grow retail, and have now offered to acquire WNR in an all-stock deal," Westlake wrote. "Management expects the acquisition to be accretive to EPS by ~10-13%, with a large synergy of $350-435m. The expected synergy has been a lot to swallow for the market, as it represents ~33-44% of WNR's EBITDA (which is already a well-run company); implying that some of the synergies will come from efficiencies at TSO itself."
Name: EQT Midstream Partners LP
Market Cap: $6.2 billion
Recent Price: $76.51
Price Target: $110
Credit Suisse analyst John Edwards wrote that EQT Midstream Partners LP (EQM) is the highest rated MLP in his coverage due to a number of factors.
"Primarily levered to infrastructure growth in the Marcellus shale play with long term, fee based contracts," Edwards wrote. "Distribution growth at EQM will be driven by it's ~$2Bn-plus organic project backlog in the most advantaged areas of the northeast, which are underpinned by long-term contracts."
Name: Pioneer Natural Resources
Market Cap: $31.4 billion
Recent Price: $185.78
Price Target: $221
Credit Suisse analyst Ed Westlake wrote that Pioneer Natural Resources (PXD) has good, visible growth for the next decade, something that's rare in the industry.
"PXD impressively laid out an operational goal baking in a 15%-plus total production CAGR through 2026, which implies ~1 MMboe/d of production by 2026," Westlake wrote to investors. "In addition, PXD management noted that vertical integration will be a major tailwind used to immunize the 10-15% service costs inflation expected broadly across the industry for 2017."
Market Cap: $42.9 billion
Recent Price: $49.36
Price Target: $60
Credit Suisse analyst James Wicklund wrote that Halliburton (HAL) is likely to benefit more than its competitors since the North American market is rebounding first.
"HAL's selective approach is clearly more positive than attempting to match revenues with rig count growth," Wicklund wrote. "Despite a somewhat disappointing Q4, HAL is the best-positioned large-cap stock to take advantage of the multi-year recovery."
Name: Golar LNG
Market Cap: $2.8 billion
Recent Price: $27.89
Price Target: $30
Credit Suisse analyst Gregory Lewis thinks Golar LNG (GLNG) is likely to benefit as liquid natural gas continues to be looked at as an energy source.
"GLNG has recently engaged in two partnerships, one with Schlumberger and another with Stonepeak, which should provide the capital and backing to allow the company to pursue its ambitions in the floating storage and regasification (FSRU) and floating liquefied natural gas (FLNG) markets," Lewis wrote to investors.
Name: Energen Corporation
Market Cap: $5.3 billion
Recent Price: $54.55
Price Target: $78
Credit Suisse analyst Mark Lear thinks Energen Corporation (EGN) will outperform as commodity prices continue to improve.
"While EGN has baked in Gen 3.0 completions into the capital guidance, the company is only factoring in Gen 2.0 productivity on the production side," Lear wrote to investors. "Should initial Gen 3.0 results continue to translate into further productivity improvements, this would introduce additional upside."