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'Strong Buys' in the Energy Sector: S&P Analyst

Wednesday, 23 Mar 2011 | 1:38 PM ET

Most oil companies are trading higher, helped by a surge in crude prices, according to Michael Kay, equity analyst at S&P.

Oil Spikes to $105, Energy Stocks Surge
A look at how energy companies, such as Chevron, are trading at all-time highs with the rise in oil prices, with Michael Kay, S&P equity analyst.

Chevron is one of the most oil-leveraged companies that we follow among the integrated—it’s close to 70 percent oil amongst production, compared to about 56 percent for Exxon,” Kay told CNBC.

Kay has “strong buy” ratings on both Chevron and ExxonMobil . He also has a $127 target price on Chevron.

“We think [Chevron] is the most attractive one in the group right now, mainly on valuation and on its oil leverage…and Exxon is right there as well,” he said.

Kay added that he expects the entire energy sector to benefit from growing natural gas demand.

Second Opinion on NatGas:

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More Market Intelligence:

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CNBC Slideshows:

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CNBC Data Pages:

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Other Oil Giants:

ConocoPhillips

BP

Royal Dutch Shell

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Disclosures:

Kay does not own shares of CVX or XOM.

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Disclaimer

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BP.
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COP
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CVX
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RDSA
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XOM
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