Mizuho Updates Oil and Gas Picks, Favoring Coterra Energy and ConocoPhillips While Downgrading Chord Energy

Mizuho has revised its top investment picks in the oil and gas exploration and production sector, selecting Coterra Energy, ConocoPhillips, and Permian Resources, while removing Chord Energy. The firm maintains a positive outlook on several companies, including Diamondback Energy and Occidental Petroleum, despite current negative sentiment toward U.S. oil and gas due to oversupply concerns.

Mizuho believes there is significant long-term value in exploration and production companies, which may become apparent by 2026. The SPDR S&P Oil & Gas Exploration & Production ETF has gained roughly 2% year-to-date but lags the S&P 500.

Additionally, natural gas prices rose approximately 22% in Q4 2025, driven by tight supply-demand dynamics. Range Resources announced a quarterly cash dividend of $0.09 per share for Q4 2025, with a production report of about 2.23 Bcfe/d. Raymond James raised its price target for Range to $42, while JPMorgan downgraded it to Underweight.