Morgans views on ASX 200 oil companies heading into August reporting season.
Morgans analysts see "solid potential" for Woodside to deliver a positive earnings surprise at its half-year result in August.
"Woodside could use its soaring earnings from the cycle and BHP merger to flex returns," the analysts said.
The broker was keen to see updates for growth assets such as Trion in the Gulf of Mexico and how the business is performing against the backdrop of inflationary pressures.
The analysts forecast Woodside to deliver US$5.49bn in revenue in the first-half, up 119% against the prior period.
Underlying net profits are projected to jump to US$1.77bn, up an outsized 401% compared to the first-half of FY21.
Morgans is Add rated with a $36.00 target price.
Likewise, Morgans is also sees "potential for a positive surprise" for Santos (ASX: STO).
"Santos has flagged that part of its focus this year will be to use its enlarged earnings profile to consider additional returns to shareholders," the analysts said.
"A key focus area in the result will be any update on asset sales at Dorado, PNG and Alaska. We hold the view that higher oil and gas prices has removed any urgency, with Santos likely seeking to sell more of Dorado to preserve its interests in PNG."
The analysts forecasts a 94.6% jump in first-half FY22 revenue to US$4.11bn and a 322% rise in underlying profits to US$1.34bn.
Morgans is Add rated with a $9.30 target price.
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