Exxon Mobil (NYSE:XOM) -2% in Monday’s trading, declining for the eighth straight session, but the stock is one of the top oil producing ideas at Bank of America, which sees Exxon along with APA Corp. (APA), Hess (HES) and Ovintiv (OVV) as offering sustainable free cash flow despite the recent drop in crude oil prices.
Energy stocks have joined virtually all equities in a broad-based selloff, but BofA’s Doug Leggate sees the top ideas among oil and gas producers having sufficient resources that will “benefit from what we believe is a long-dated forward curve” and offer “sustainable free cash flow.”
After OPEC’s “modest but demonstrable production cut,” the analyst said BofA “continues to believe oil markets are seeing a new age of intervention by Saudi that can redefine $80 oil as the new $60, consistent with the recent reset in our long-term valuation basis for the U.S. oils.”
Exxon Mobil (XOM) shares have shed 14% during their eight-session losing streak and 20% off a record $105.57 intraday price achieved on June 8.
Citing differentiated upstream projects led by Guyana and the Permian Basin, Goldman Sachs last week reiterated Exxon Mobil (XOM) as a Buy with a $112 price target.
Read More: Exxon among top oil ideas at BofA despite stock’s eighth straight daily loss (NYSE:XOM)