July 24, 2018 / 3:36 PM / 3 months ago

BUZZ-U.S. oil & gas E&P cos set for renaissance - Mizuho

** Mizuho initiates coverage of integrated U.S. oil & gas E&P cos with “constructive” view

** Starts with “buy” recommendation: Anadarko Petroleum , EOG Resources, Noble Energy, Occidental Petroleum Corp, Pioneer Natural Resources, Suncor Energy Inc

** Initiates at “neutral”: Apache Corp, ConocoPhillips, Devon Energy, Hess Corp, Marathon Oil Corp

** Sets Murphy Oil as sole “underperform”

** Lead analyst Paul Sankey says U.S. E&P group is “in its best shape in a generation,” citing resource potential, strong balance sheets following 2014 downturn, capex discipline, rising shareholder return, among other issues

** Says most operators focusing 2018 spending plans to deliver cash flow down to $50/bbl, sets group up for positive FCF and cash return growth

** Oil prices rose on Tues as oversupply fears and trade tensions abated on the possibility of increased Chinese demand due to reports that China will increase infrastructure spending

** The S&P 500 Integrated Oil & Gas index was up 1.7 on Tues

** But so far this year, the SPLRCOILI has been relatively flat compared with the S&P 500’s >5 pct advance (Reporting by Stephen Culp)

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