By Paul Sankey
Published on October 8, 2020 at 9:15 AM
Chevron for ExxonMobil merger? The numbers and strategy make sense. Reduced costs, reduced capex, get through the dividend mess, and upgrade the overall player in ESG terms (mega-company suggested new name: “Chevron”). All year XOM has been breaking bad levels, and the latest is that its market cap fell below Chevron’s yesterday. Just a reminder on scale, with market caps equal at ~$140bn: XOM Capital employed $236bn and a feeble 6% ROCE in 2019. $31bn […]
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By Paul Sankey
Published on September 20, 2020 at 11:37 AM
Good day! A chill September wind is blowing across Brooklyn Heights, as summer officially ends and fall very much starts. The market is feeling chills too, with COVID continuing to present a major challenge to policy-makers globally. We remain extremely frustrated by the excessive lock down requirements in New York despite effectively zero COVID. With massive testing, less than 1% positives are being found, and essentially no deaths (statistically speaking). This past week we quoted […]
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By Paul Sankey
Published on September 15, 2020 at 9:19 AM
Spoke to a top Portfolio Manager yesterday who summed it up, “Why buy a company with a dubious track record, in transition, and that could be Shell as much as BP? Service is dead – have you seen BP and Shell’s deepwater plans? They cancelled. E&P looks bad with the current oil market, look at EOG re-valuing to be in line with the group; we only get strong oil balances by end 2021. Refining margins […]
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