XEC - Wells Fargo stays positive on oil/gas names as it looks to 'Shale 3.0'

Following a week where oil-focused names followed crude prices lower, Wells Fargo is plumbing for tickers of interest with the investment case in exploration and production "incrementally positive." "With the impacts of Shale Wars 2.0 and COVID-19 having negatively impacted the energy sector (and E&P specifically) on both the supply and demand side, we see the YTD underperformance vs. the broader market as having skewed the risk/reward positive moving forward," the firm says. The week has been no help on the year-to-date numbers, with the S&P E&P index down 8.7%, lagging the broader market, as front-month Brent and WTI crude fell 3.4% and 1.9% respectively. Natural gas-focused names were the week's best performers - but its worst were small/mid-cap oil-focused names that tumbled by double digits. A more constructive view on the sector is backed by three themes, Wells Fargo says: The worst of the macro down-cycle is in the

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Wells Fargo stays positive on oil/gas names as it looks to 'Shale 3.0'