New Oil Stocks to Watch! Potential Big Gains Ahead

For those eyeing the Australian shares market, there are some oil and gas stocks that stand out as prime candidates for investment. Analysts have pinpointed two particular ASX stocks that are gaining attention due to their promising potential.

Santos emerges as a key player for investors looking at the sector. This global energy company operates across Australia, Papua New Guinea, Timor-Leste, and the United States. Experts at Ord Minnett highlight Santos’s promising future, emphasizing its strong free cash flow outlook. They believe that once ventures like Pikka and Barossa LNG become operational, Santos will be in a favorable position to reward shareholders, possibly through increased dividends or share repurchases. With a predicted 20% free cash flow yield, the company offers compelling medium-term prospects. Currently, Ord Minnett places a buy rating on Santos with a price target of $8.50, suggesting a potential 26% increase from its current share price of $6.74. A dividend yield of about 6% is anticipated for FY 2025.

Woodside Energy Group Ltd is another noteworthy option for investors. Analysts at Morgans view Australia’s largest energy producer as undervalued despite its robust growth profile and resilient balance sheet. The company’s share price, which seems low relative to the steady Brent oil price, is backed by substantial margins and a strong balance sheet. Morgans remains optimistic, maintaining an add rating with a $33.00 target price, suggesting a 33% upside from its recent price of $24.86. Investors can also expect a 6.1% dividend yield by FY 2025.

Both stocks present enticing opportunities for investors seeking value in the oil and gas sector.

Unlocking Value in the Australian Oil and Gas Sector: Expert Insights on ASX Stocks

With the Australian shares market bustling with potential, particularly in the oil and gas sector, two ASX stocks have gained the spotlight for their promising investment prospects: Santos and Woodside Energy Group Ltd. These stocks are attracting attention from investors worldwide, thanks to their compelling growth outlooks and robust financial health.

Santos: Fueling Growth with Strategic Ventures

Santos stands out as a beacon for investors focused on global energy markets. Known for its vast operations across Australia, Papua New Guinea, Timor-Leste, and the United States, Santos is poised for significant growth. Analysts at Ord Minnett underscore the company’s prospective strength, driven by its strong free cash flow forecast.

The key to Santos’s tantalizing potential lies in its upcoming projects, such as Pikka and Barossa LNG, which are anticipated to enhance its financial performance substantially. Once these ventures come online, the company is expected to distribute rewards to its shareholders, possibly through higher dividends or share buybacks. A noteworthy free cash flow yield of 20% is predicted, offering impressive medium-term prospects.

Ord Minnett supports Santos with a buy rating and a price target of $8.50, forecasting a potential 26% increase from the current share price of $6.74. Additionally, by FY 2025, a dividend yield of approximately 6% is expected, further underscoring the stock’s appeal.

Woodside Energy Group Ltd: A Hidden Gem with Significant Upside

Woodside Energy Group Ltd, Australia’s largest energy producer, presents a unique opportunity for investors seeking undervalued stocks with strong growth profiles. Despite its robust operational performance and solid balance sheet, analysts at Morgans find Woodside to be undervalued. Its share price does not yet fully reflect its advantageous position amid stable Brent oil prices.

Morgans is optimistic about Woodside’s potential, maintaining an add rating with a target price of $33.00, highlighting a 33% upside from its recent share price of $24.86. The company, known for its substantial margins and financial stability, is anticipated to offer a 6.1% dividend yield by FY 2025, providing attractive returns for shareholders.

Strategic Investment Opportunities

Both Santos and Woodside Energy present enticing opportunities for investors seeking to capitalize on the evolving oil and gas sector. With their solid foundations and promising forecasts, these stocks are poised for growth, making them valuable additions to any investor’s portfolio.

To explore more about these industry leaders and their potential impacts on the energy market, visit the official websites of link name and link name.