Keybanc raises price targets on oil producers amid market shifts

Investing.com -- Keybanc raised price targets on several oil and gas exploration and production companies on Tuesday, citing changes in physical markets and commodity price outlooks.

The firm increased its price target for Kimbell Royalty Partners to $18 from a previous level, Matador Resources to $73, Murphy Oil to $47, Permian Resources to $28, SM Energy to $46, and Talos Energy to $23.

Keybanc revised its commodity outlook, raising oil price forecasts while lowering natural gas expectations. The firm pointed to intensifying regional conflict in Iran and accelerating oil imports from China as factors supporting higher oil prices.

On natural gas, Keybanc noted that summer heat failed to normalize inventory levels. Power sector gas demand increased only slightly during the period. The firm said improved pipeline capacity out of the Permian Basin may lead to oversupply as producers increase output through year-end 2026, with a potential El Niño winter possibly reducing heating demand.

The updated price targets reflect the new commodity price assumptions. Keybanc maintains a positive view on Matador Resources, SM Energy, and Talos Energy among the oil-focused exploration and production companies.

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