Imperial Capital today initiated coverage of four E&P stocks – Callon Petroleum (NYSE:CPE), Parsley Energy (NYSE:PE), Ring Energy (NYSEMKT:REI) and RSP Permain (NYSE:RSPP) – and two MLPs – Kimbell Royalty Partners (NYSEMKT:KRP) and Viper Energy Partners (NASDAQ:VNOM) – with Outperform ratings.
Imperial notes CPE spent more than $1.2B in three major deals that nearly tripled its Permian footprint, and the company is becoming more aggressive with its Delaware Basin drilling program.
PE, also with a strong record of strategic Permain acquisitions, has been ramping up its rig counts, adding staff and recently raised its 2017 production guidance by 3%.
The firm says REI has achieved strong results from its shallower Central Basin Platform horizontal wells and has plenty of room to expand the technique to other acreage.
RSPP has taken a very responsible approach to acquisitions, always staying mindful of the health of its balance sheet along the way, Imperial says.