Goldman Sachs Maintains Positive Oil/Gas View (TLM, NFX)

Goldman Sachs (NYSE: GS) is out with an investor note this morning that is reiterating their positive view on select Oil/Gas players. They said that they are maintaining an “Attractive” coverage view on the sector and that E&P stocks should begin to reflect higher natural gas/oil prices.

Analysts continue to believe that “1.) Tighter supply-demand vs
expectations can push gas prices higher in the coming months; and (2) 2011 gas futures need to rise for production to balance demand given less favorable E&P company hedges.”

In reaction, Goldman is raising targets on Newfield Exploration (NYSE: NFX) and Talisman Energy (NYSE: TLM). They say that they see Talisman’s restructuring is on track with more focused growth from North American shale, though they were also quick to point out that “the ability to keep production in the North Sea flat and grow SE Asia is key in coming years. “

As for NFX, Goldman sees potential positive catalysts and their results in Bakken, Granite Wash, and Malaysia.