The oil and gas sector’s profits and payouts look to have peaked in 2022. So unless another shockwave arrives to send energy prices soaring again, investor attention will focus on those companies able to produce profitably at lower prices.
Tip style
Income
Risk rating
Medium
Timescale
Medium Term
Bull points
- Prices smoothed by hedges
- Growth strategy continuing
- 15 per cent forecast yield
- Decent record to date
Bear points
- Scrutiny over well retirements
- Large debts, negative equity
Diversified Energy (DEC), which has a significant hedge book aimed at keeping profits rolling even in weaker markets, is an exemplar of this hallowed consistency.