economy
Morgan Stanley says buy this dividend-paying ‘key beneficiary’ of rising oil prices
The firm recently upgraded a stock that could see a boost to its free cash flow yields as oil prices become sticky.
TL;DR
- Morgan Stanley expects oil prices to stabilize above pre-conflict levels despite potential resolutions in the Middle East.
- Chord Energy has been upgraded to 'overweight' by Morgan Stanley due to its status as a key beneficiary of rising oil prices.
- Chord Energy offers a 18% free cash flow yield and a 12% shareholder return yield, significantly higher than the oil E & P average.
- The company is increasing its focus on longer lateral wells (three- to four-mile) to boost productivity and capital efficiency.
- The stock currently offers a 3.6% dividend yield, and the company recently increased its base dividend.