Morgan Stanley analyst Devin McDermott “writes that after years of spending beyond their means and disappointing investors, E&P companies are finally reaping the benefits of higher oil prices and lower supply costs, and while the tide has turned, plenty of investors haven’t realized that it’s time to get back into the sector,” according to Barron’s.
Related: Energy ETFs May Strike it Big This Earnings Season
Some analysts speculate that smaller energy companies could poised for a period of out-performance over their large-cap counterparts. While the weighted average market value of XOP’s 69 holdings is $23.88 billion, as an equal-weight ETF, XOP does offer more small- and mid-cap exposure than cap-weighted rivals.
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