The biggest news last year in the energy markets became a reality on January 1 as OPEC finally cut its production for the first time in years. While it is no secret that some countries will cheat, and Iran has no intention of slowing its newly resumed oil sales, there is reason to believe that most will adhere to the cuts, as the spot price of oil needs to be higher for many Middle East nations as that is their main source of revenue.

In a recent Stifel research report that highlights some top picks for 2017, the analysts raised both their natural gas and oil price targets. They do note though that increased domestic demand, combined with the continuing strength in the dollar, could keep oil from going above $60. The report also said this regarding overall stock selection:

While exploration and production valuations are not cheap, select stocks should perform well this year. Companies with high-quality assets are well positioned to add significant shareholder value amid a stable to rising oil and gas price environment, while oilfield service cost inflation remains relatively benign for most of this year.

Here we focused on the large cap stocks, with a market capitalization at $10 billion or higher, that Stifel covers, and these five are rated Buy and look to be good additions to long-term growth portfolios.

Anadarko Petroleum

This top company is still down almost 40% from the highs printed in 2014. Anadarko Petroleum Corp. (NYSE: APC) operates through three segments. The Oil and Gas Exploration and Production segment explores for and produces natural gas, oil, condensate and natural gas liquids (NGLs).

The Midstream segment provides gathering, processing, treating and transportation services to Anadarko and third-party oil, natural gas and NGLs producers, as well as owns and operates gathering, processing, treating and transportation systems in the United States. The Marketing segment markets oil, natural gas and NGLs in the United States; oil and NGLs internationally; and anticipated liquefied natural gas production from Mozambique.

The company’s asset portfolio includes U.S. onshore resource plays in the Rocky Mountains, the southern United States, the Appalachian basin and Alaska; the deepwater Gulf of Mexico; and in Mozambique, Algeria, Ghana, Brazil, Colombia, Côte d’Ivoire, Kenya, Liberia, New Zealand and other countries. As of December 31, 2015, it had approximately 2.1 billion barrels of oil equivalent of proved reserves.

The company has several intriguing near-term catalysts, including incremental asset sales that could support further deleveraging, as well as a simplification of the story as Anadarko looks to focus its U.S. asset base on the three Ds: DJ Basin, Delaware Basin and Deepwater.

Anadarko investors receive a 0.3% dividend. The Stifel price target for the stock is $86. The Wall Street consensus price objective is 79.09. Shares closed Tuesday at $71.24.

Concho Resources

Besides being one of the top energy plays in the Permian Basin, this is also a Wall Street favorite. Concho Resources Inc. (NYSE: CXO) is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. Its principal operating areas are located in the Permian Basin of southeast New Mexico and West Texas. As of December 31, 2015, its total estimated proved reserves were 623.5 million barrel of oil equivalent.

The company is targeting to deliver 20% oil production growth next year, while investing within its cash flow, a move that many on Wall Street see as very positive. By carefully managing growth and spending, the company looks to be in position to restart the double-digit production growth next year, while many peers are struggling to generate enough excess cash flow to boost output.

Analysts love the company as a pure-play on the Permian Basin, with operations in Texas and New Mexico, where it owns 600,000 net acres. The company has 624,000 barrels of oil equivalent (boe) of proven reserves, of which 57% is classified proved developed and 59% is oil

Stifel has a $180 price target, and the consensus target is $159.31. The shares closed Tuesday at $134.76.

EOG Resources

This leading energy company shows up well on many Wall Street screens. EOG Resources Inc. (NYSE: EOG) is one of the largest independent exploration and production companies operating in the United States, Canada, Trinidad, the United Kingdom and China. As of December 31, 2015, it had total estimated net proved reserves of 2,118 million boe, including 1,098 million barrels of crude oil and condensate reserves, 383 million barrels of natural gas liquid reserves and 3,825 billion cubic feet of natural gas reserves.

The stock ended 2017 up 45%, putting it closer to regaining the highs hit before oil prices started falling in the middle of 2014. Back in September the company acquired Yates and that deal added 1,740 premium locations, while providing the company with a substantial acreage position across the country, representing potential development or monetization upside.

EOG Resources announced in the fall that it was raising its compound annual oil growth rate to 15% at $50 oil and 25% at $60 crude. Further, the company also increased the net resource potential of its Delaware Basin acreage from 2.5 billion boe to 6.0 billion.

Investors receive a 0.65% dividend. The $120 Stifel price target compares with the consensus target of $111.21. The stock closed most recently at $105.39.

Noble Energy

Noble Energy Inc. (NYSE: NBL) is an independent energy company that engages in the acquisition, exploration and production of crude oil, natural gas and NGLs worldwide. Its principal projects are located in DJ Basin, Marcellus Shale, Eagle Ford Shale and Permian Basin of the United States, as well as in deepwater Gulf of Mexico, offshore Eastern Mediterranean and offshore West Africa. As of December 31, 2015, the company had approximately 1,421 million barrels oil equivalent of total proved reserves.

The company recently acquired about 7,200 acres in the southern Delaware Basin near Reeves County, Texas. The acquired properties are situated near the company’s existing acreage. Noble now boasts around 47,200 net acres and 12,000 boe per day in the area, up 20% with the purchase. The acquisition is part of the company’s increased investment in the basin and was announced in a late 2016 presentation. The deal was funded with cash on hand.

Shareholders receive a 1.07% dividend. Stifel has set a $49 price target. The consensus target is $45.71. The stock closed at $37.39.

Cimarex Energy

This is another top play for investors looking to the Permian Basin. Cimarex Energy Co. (NYSE: XEC) is an independent exploration and production company. Its primary activities are in the Mid-Continent and Permian Basin areas of the United States. The company is focused on increasing shareholder value through strategies linked to generating attractive economic returns on capital employed and profitable growth in per-share reserves, production and cash flow. It intends to profitably grow reserves and production through a balanced mix of exploration, exploitation and acquisitions.

Cimarex has a diversified base of high-quality production and attractive drilling opportunities. It should be noted that hedge funds have initiated sizable new positions in the company over the past year, and like its brethren in the Permian, many consider the company a very solid takeover target.

Investors receive a 0.23% dividend. The $155 Stifel price target is near the consensus target of $154.85. Shares closed at $139.65.

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These stocks have had big runs since posting lows a year ago. Investors may want to scale capital in slowly and look for a market pullback to add shares at lower price levels.

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