Most oil companies are trading higher, helped by a surge in crude prices, according to Michael Kay, equity analyst at S&P.
“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:
More Market Intelligence:
- Oil Will Be Gone in 50 Years: HSBC
- Beware the Energy 'Panic Trade': Strategists
- $120 Oil: The Breaking Point for Consumers?
CNBC Data Pages:
Other Oil Giants:
Royal Dutch Shell
Kay does not own shares of CVX or XOM.