Energy Stocks: Santos (STO), Beach Petroleum (BPT) and Woodside (WDS)
Hi Market Matters What's your current view on these stocks? regards Debra
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Answer
Hi Debbie,
As the chart below illustrates these 3 stocks basically move as one, closely tracking the underlying oil & gas prices. The primary issue with these 3 energy producers is that Trump wants prices down to combat inflation and help keep the US economy out of a recession. We don’t believe he will get everything he wants but he is a formidable opponent, especially in the short term. However, the group do look they are looking for/have found a low:
- BPT is our least preferred given the complexity of their assets, though, from a technical perspective, they do look very capable of testing $2 this year 25-30% higher.
- STO looks well supported around $6 but the next 10-15% upside will be harder going.
- WDS looks well supported ~$22 but also comparatively “tired and owned” as it bounces towards $24-6.
Overall, we are more positive on these 3 stocks through 2025 than we have been in recent years. As an added bonus STO & WDS are set to pay chunky fully franked dividends in August.
