We expect strong Q1 reports and bullish management teams. Oil price assumptions up, near-term gas price slightly down. Best risk/reward in AKRBP, VAR, IPC, TGS, ODL, DOFG and SUBC.
High visibility, 88% '24-26e coverage + options to at least mid-2029 and significant FCF growth towards '26. 3.5-2.7x EBITDA and 19-30% FCF yield (EV) '25/'26, BUY, TP of NOK 75 (56).
Q4 reports to show improvements and management to be bullish, but investors fear lower oil prices and poorer fundamentals ahead. Best risk/reward in AKRBP, EQNR, TGS, ODL, BORR, DOFG, SUB (all BUY).
75% EV payback by YE'27 on high '24-'26e coverage, and market-linked options until at least mid '29 for all rigs. 3.1-2.4x '25-26e EBITDA and 15-26% divi yield, BUY.
OPEC will have to extend cuts through Q1'24 before it can increase production. Oil market fundamentals look strong medium- to long-term. Both E&P and oil service shares look highly attractive.