Top 10 Oil & Gas E&P Stocks Outperforming Despite Sinking Oil Prices

4. Veren Inc. (NYSE:VRN)

Veren Inc. develops, acquires, and holds interests in petroleum assets operations. The company recently entered into a merger agreement with Whitecap Resources in an all-share transaction valued at approximately C$15 billion, along with debt. The company’s stock is up 5.18% in the last one week of trading.

Raymond James analyst Luke Davis shared his thoughts on this merger by saying:

“The merger is a match made in heaven and a long time in the making, as the combined company is positioned exceptionally well thanks to Whitecap’s management team and poised to improve operational performance and capture synergies across the value chain.”

The company also offers an attractive dividend yield of 5.5%, which makes it a compelling candidate for income-oriented investors. There was a surge in the market price once the merger was announced, but that could be attributed to an arbitrage play between the two companies involved.

Over time, one may see the stock price correct itself to come back to its previous valuations. However, investors shouldn’t forget that the Canadian Oil landscape has now changed with the two companies coming together. The resulting entity will be in a better position to negotiate favorable pricing with service providers and be less prone to risks that normally affect its now smaller peers.