5 Companies Primed to Profit From This $3.3 Trillion Energy Prize
The Permian Basin that sits underneath western Texas and southeast New Mexico has produced a remarkable 29 billion barrels of oil since its discovery nearly a century ago. However, according to a recent report by IHS Markit, drillers have only just scratched the surface since there could be as much as 60 billion to 70 billion barrels of recoverable oil still saturating those rocks. It's a massive prize IHS Markit pegs as being worth a stunning $3.3 trillion at current oil prices.
While hundreds of oil companies are vying for positions to tap into this bounty, a handful built up top-tier acreage holdings in some of the Permian's best spots. As a result, these companies are forecasting prodigious growth in production and cash flow, which could fuel big-time returns for investors if oil doesn't budge and with even greater potential if prices rise.
Image source: Getty Images.
Source: Fool.com
Diamondback Energy Stock
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As a result the target price of 183 € shows a slightly positive potential of 4.62% compared to the current price of 174.92 € for Diamondback Energy.
