Keybanc Lifts Price Targets for Oil Producers Amid Market Shift
Keybanc, a financial services company, has raised its price targets for several oil and gas exploration and production companies due to changes in physical markets and commodity price outlooks. The firm increased its price target for Kimbell Royalty Partners to $18 from its previous level of an unspecified amount. Matador Resources saw its target rise to $73, while Murphy Oil's new target is $47.
The updated targets also include Permian Resources at $28 and SM Energy at $46, with Talos Energy's price target set at $23. Keybanc revised its commodity outlook, expecting higher oil prices due to intensifying regional conflict in Iran and accelerating oil imports from China.
On natural gas, the firm noted that summer heat did not normalize inventory levels, with power sector gas demand increasing only slightly during this period. Improved pipeline capacity out of the Permian Basin may lead to oversupply as producers increase output through year-end 2026, potentially reduced by a potential El Niño winter.