Zacks Industry Outlook Highlights: Chevron, PetroChina Company, Halliburton, Denbury Resources and Sasol

CHICAGO, Feb. 8, 2012 /PRNewswire/ -- Today, Zacks Equity Research discusses the Oil & Gas, including Chevron Corp. (NYSE: CVX), PetroChina Company Limited (NYSE: PTR), Halliburton Company (NYSE: HAL), Denbury Resources Inc. (NYSE: DNR) and Sasol Ltd. (NYSE: SSL).

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A synopsis of today's Industry Outlook is presented below. The full article can be read at  

http://www.zacks.com/stock/news/69253/Oil+and+Gas+Stock+Outlook+-+Feb.+2012

In this current turbulent market environment, we advocate the relatively low-risk energy conglomerate business structures of the large-cap integrateds, with their fortress-like balance sheets, ample free cash flows even in a low oil price environment and growing dividends. Our preferred name in this group remains Chevron Corp. (NYSE: CVX).

Its current oil and gas development project pipeline is among the best in the industry, boasting large, multiyear projects. Additionally, Chevron possesses one of the healthiest balance sheets among peers, which helps it to capitalize on investment opportunities with the option to make strategic acquisitions.

The current oil price environment should also benefit producers, particularly those international players having attractive growth opportunities in their home markets. One such standout name is PetroChina Company Limited (NYSE: PTR), which remains well-placed to benefit from the country's growing appetite for energy and the turnaround in commodity prices. PetroChina -- one of two Chinese integrated oil companies -- is poised to capitalize from the country's impressive economic growth that has significantly increased its demand for oil, natural gas and chemicals.

Within the oilfield services group, we like

(NYSE: HAL). We are a fan of the Houston, Texas-based player's leading position in the global oilfield services market, its broad and technologically-complex product/service offerings, and its robust financial profile. The company has been benefiting from increased activity in the unconventional shale plays in North America, which has more than made up for the drop in deepwater Gulf of Mexico activity and disruptions in North Africa.

Denbury Resources Inc. (NYSE: DNR), a leading CO2 'Enhanced Oil Recovery' (EOR)-focused company targeting a large attractive market, is also a top pick. With its unique profile, compelling economics and an unmatched infrastructure, Denbury is nicely positioned to deliver long-term sustainable growth. Additional positives for Denbury include a strong financial position, low-risk investments and an active divestment policy.

Further, we remain optimistic on the near-term prospects of South African petrochemicals group

(NYSE: SSL). We like Sasol for its diverse portfolio of assets that produce a wide array of chemical and liquid fuels. The company specializes in gas-to-liquids (GTL) and coal-to-liquids (CTL) technologies, which convert natural gas and coal to diesel and other liquid fuels.

Recently, these technologies have been attracting attention because they provide an alternative to traditional oil. Additionally, Sasol's deleveraged balance sheet and strong cash position keeps the group well-equipped to weather the global economic storm and fund its growth program in tough credit markets.

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