Apache (NYSE:APA), EOG Resources (NYSE:EOG), Devon (NYSE:DVN), QEP Resources (NYSE:QEP) Top Integrated Oil And Refiners Picks of Barclays

The top picks of Barclays (NYSE:BCS) in the Integrated Oil And Refiners segment are Apache (NYSE:APA), EOG Resources (NYSE:EOG), Devon (NYSE:DVN) and QEP Resources (NYSE:QEP).

Barclays said, "Highlight of the week: Israel. The Noble-operated Leviathan well confirmed the pre-drill (P50) resource range of 16 tcf and the Sheshinski Committee presented a set of recommendations that would increase the government share of natural gas revenues from about one third to 50-62%. While this is a very substantial discovery, the tax change could be read as punitive. Although the tax changes are not as negative as earlier suggestions, the acceptance of these recommendations would have a material negative impact on the NAV of both Tamar and Leviathan. We believe that Noble will deliver value creation well above peer averages, but we caution that there could be a negative reaction to continuing tax discussions.

"Notable potential catalysts. Monthly production volumes from Canadian Oil Sands operators as well as a budget announcement from Pioneer.

"The group trades at 6.7 times our 2012 debt-adjusted cash-flow estimates on a price deck of $90/$4.50 (excluding COS, MEG, Range Resources (NYSE:RRC), Southwestern Energy (NYSE:SWN), and Ultra Petroleum (NYSE:UPL)), a 12% premium to the historical valuation of 6.0 times forward-year cash flow. Our top picks are Apache, EOG Resources, Devon and QEP Resources (the only gas stock of the four)."

Apache closed Tuesday at $121.86, up $0.83, or 0.69 percent. EOG closed at $92.14, down $0.21, or 0.23 percent. Devon closed at $78.20, losing $0.48, or 0.61 percent. QEP closed at $36.51, dropping $0.01, or 0.03 percent.