Oil & Gas

Capital Calls: Exxon, Greensill, Research SPAC

2 March 2021

Concise views on global finance in the Covid-19 era: U.S. securities regulators take on the oil giant; Investors in even lower-risk funds get nervy about the supply chain finance provider; And a supplier of picks and shovels to the online trading boom gets a blank-check listing.

Capital Calls: Bubble alert

16 February 2021

Concise views on global finance in the Covid-19 era: Bitcoin burst through $50,000, and global fund managers are maximum bullish on the pace of the recovery from the pandemic.

BHP boss gets extended Chinese honeymoon

16 February 2021

Covid-19 infected Mike Henry’s first year as the miner’s CEO, but high iron ore prices driven by demand from the People’s Republic just paid for a record $5.1 bln dividend. They also buy him extra time to grapple with a dual listing, potash plans and Beijing’s ban on Aussie coal.

Shell’s new plan tests investors’ green resolve

11 February 2021

The Anglo-Dutch group’s decarbonisation strategy will see it stay big in oil longer than BP. European investors now have a choice between Shell’s walking pace and its rival’s handbrake turn into wind and solar. It could become a gauge of how seriously investors take green issues.

Exxon Mobil-Chevron deal options

10 February 2021

The two U.S. energy giants have discussed combining. Either one could buy the other at a premium, or they could try a merger of equals. The financial shape of the combined company would be different in each case.

Chexxon fantasy M&A – who would buy whom?

10 February 2021

Exxon Mobil could in theory acquire Chevron at a premium, mostly for stock. But Darren Woods may not be investors' preferred leader. Chevron buying Exxon might bring the right CEO but call for too much leverage. The best option could be a well timed $400 bln merger of equals.

Capital Calls: KKR, the investment bank

9 February 2021

Concise views on global finance in the Covid-19 era: The private equity firm run by Henry Kravis is building a useful capital-markets business, with almost half its deals last year for outside clients.

Jeff Ubben’s soft touch could help hardened Exxon

5 February 2021

The activist behind Inclusive Capital may join the $204 billion oil giant’s board. He helped usher Ballmer out of Microsoft and encouraged an aging Adobe to transform. With vocal and quiet agitators at Exxon, shareholders need a diplomat. Ubben’s experience could prove useful.

Shell’s strength jars with sedate green strategy

4 February 2021

The $140 bln oil giant earned $4.8 bln last year as rivals made losses. Next week’s strategic overhaul is unlikely to involve big cuts in crude output or BP-style wind power targets. The cautious approach runs counter to its green-leader image – and the prevailing investor mood.

BP walks green high wire without a safety net

2 February 2021

The $72 bln UK oil major missed analysts’ expectations and announced a $6 bln annual loss. CEO Bernard Looney’s bigger problem is that his firm’s shares have underperformed since he committed to wind and solar. Investors may be fretting that his pivot from crude is too violent.

Exxon-Chevron tie-up is right deal, tricky time

1 February 2021

A potential $350 bln mega-deal entices on paper with savings that could be valued as high as $20 bln. That would shore up both companies against oil’s darkening future. Exxon would need humility, though, and government a desire for a fossil fuel champion. Both are huge hurdles.

Chevron looks exposed without cover from Exxon

29 January 2021

The $171 bln oil group's shares fell premarket on Friday despite a reduced fourth-quarter loss and steady production. Boss Mike Wirth is maintaining a strong balance sheet. That sets Chevron up well, but without its larger rival's usually same-day earnings, there's less to like.

Climate activists melt Exxon glacier of truculence

27 January 2021

The $194 bln oil giant has largely ignored investors worried about the environment and that oil's best days are over. Now it may add independent directors, make greener investments, and cut capex. Credit squeaky activists plus a rumbling threat from institutions like BlackRock.

Naturgy offers cut-price route to green transition

26 January 2021

IFM is spending 5 bln euros on 23% of the Spanish utility. Naturgy’s depressed shares and the Australian fund’s use of debt will juice its returns. Moreover, it’s a cheaper way of surfing the renewable energy wave than boarding rivals like Iberdrola.

Keystone XL is stage for more political theater

21 January 2021

The logic behind the U.S. pipeline was already on the fritz. Oil’s future is uncertain, especially the crude in Canada that Keystone would have transported. Banks, too, were pulling back from lending. Joe Biden’s order nixing the project is mostly symbolic of future intentions.

Corona Capital: Bank of America, Halliburton, NBA

19 January 2021

Concise views on the pandemic’s corporate and financial fallout: Bank of America’s animalistic analogies; Halliburton sees a recovery that can’t come soon enough; The New York Knicks’ valuation has its top spot to lose.

Total’s Indian green energy splurge has two hedges

18 January 2021

The French giant is upping its exposure to renewable power by buying 20% of Adani Green Energy. The $2.5 bln price tag is well below the target’s market value. Teaming up with tycoon Gautam Adani may also help avoid problems suffered by other Western energy groups in India.

Chevron makes bet on being last man standing

12 January 2021

Mike Wirth, the $180 billion energy firm’s boss, thinks oil demand will stay strong. That contrasts with rivals like BP, which sees production down 40% by 2030. Chevron has the advantage of size. But plans to outlast or acquire rivals are risky in a rapidly evolving industry.

Africa’s debt chickens return to restive roost

31 December 2020

Even before Covid-19, the continent faced a reckoning. Low commodity prices remove a major growth pillar, while mounting leverage rules out more foreign borrowing. With budgets and citizens under pressure from Angola to Zimbabwe, Africa Rising looks more like Africa Uprising.

Corona Capital: Vaccine dibs

21 December 2020

Concise views on the pandemic’s corporate and financial fallout: Vaccine prioritization is about to get competitive.