Oil & Gas

Utility mega-deal may create wrong kind of sparks

30 Sep 2020

NextEra’s tilt at rival Duke could create a $200 bln giant, spanning clean-energy generation and lighting homes across the American south. NextEra’s juiced-up shares give it a currency. But the need to please watchdogs suggests a deal has to be harmonious, and probably expensive.

Corona Capital: NYC

30 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: New York City’s economic reboot comes up against a new outbreak.

Corona Capital: Shale merger, Logistics startup

28 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: Two Permian Basin oil drillers agree to merge to share their coronavirus demand-shock woes; and delivery upstart ShipBob gets some SoftBank cash to help it compete with Amazon.

Review: Oil historian of record drops his compass

18 Sep 2020

Three decades after his celebrated history of the hydrocarbon industry, “The Prize”, Daniel Yergin has published “The New Map”. His account of recent energy geopolitics is typically authoritative. A discussion of the ongoing energy transition, however, lacks clear signposts.

BP limbers up for green transition high-wire act

14 Sep 2020

The UK group is the first oil major to pivot to wind and solar in a big way. To fund the shift, CEO Bernard Looney has cut the dividend and assumes higher oil prices. Even then, investors face years of relatively spartan payouts, and uncertain returns from green investments.

Big Oil’s green turn is justified by the numbers

7 Sep 2020

BP’s call to hike spending on renewables risks a repeat of past goofs. But hard data implies oil majors have been the ones eroding shareholder value in recent years. By comparison, the falling expense of wind and solar power and their lower cost of capital make them a safer bet.

Review: MbS, Saudi Arabia’s sharpest prince

4 Sep 2020

From the Ritz rumble to unleashing a sovereign fund, "Blood and Oil" brings together the antics of the kingdom’s crown prince in a gripping page-turner. Mohammed bin Salman’s rise through grisly palace politics to unprecedented power elicits horror and, sometimes, admiration.

Apollo and Abu Dhabi scratch each other’s backs

2 Sep 2020

A consortium led by the private equity titan has struck a $2.7 billion deal for a 49% stake in a real estate company held by the emirate’s energy group ADNOC. Apollo-linked insurers snap up long-term secure assets. Abu Dhabi gets a cash injection from selling the family silver.

India Insight: Ambani, a maverick Rockefeller

25 Aug 2020

Data is the new oil for the tycoon who wants his $185 bln Reliance to serve all the needs of Indian consumers. He’s backed by America’s tech monopolists. Just as the Standard Oil energy cartel birthed U.S. antitrust law, Mukesh Ambani will amass power until told to stop.

BHP selfishly brushes up green credentials

18 Aug 2020

Surging iron ore sales cushioned declines in other commodities as annual earnings fell 4% to $9 bln. Boss Mike Henry plans to ditch some high-polluting energy assets, albeit for economic, not environmental, motives. Regardless, a cleaner portfolio makes business sense.

Guest view: Let’s gauge firms’ real CO2 footprints

14 Aug 2020

Corporate reports often cite carbon emissions created by companies’ production and customers. But, as Extinction Rebellion spokespeople Roc Sandford and Rupert Read argue, these ignore the global warming tacitly supported through lobbying and advertising. That needs fixing.

Aramco’s dividend defences are triple-locked

10 Aug 2020

The Saudi state oil giant is disbursing $18.8 bln despite quarterly earnings slumping to $6.6 bln. Ultra-low costs lend an edge over Western rivals. Low debt and priority for private shareholders are extra buffers for those willing to overlook environmental and social concerns.

BP gets serious about tough corporate reshaping

4 Aug 2020

CEO Bernard Looney’s dividend cut frees up cash for renewables investment. Plans to axe oil output by 40% by 2030 show added commitment to flicking the green switch. Selling assets is easy but growing new businesses is hard. BP risks ending up neither an oil nor an energy major.

Exxon boss drills deeper into strategic hole

31 Jul 2020

Darren Woods' business is already more indebted and capital intensive than Chevron or ConocoPhillips. Now he wants to slash costs to save Exxon's annual dividend. It's unsustainable even in purely financial terms: The $177 bln oil major’s performance no longer supports it.

Weakened Shell offers dim hope for pre-virus glory

30 Jul 2020

The $122 bln oil major’s sales fell nearly two-thirds in the second quarter, as the pandemic hurt crude prices. A dividend cut looks prudent. But a legacy of high debt, less investment and weak demand for fossil fuels mean investors are unlikely to see fat payouts restored soon.

Corona Capital: GM, Glaxo, Shopify, Movies, Pemex

29 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: General Motors pulls further ahead; GlaxoSmithKline’s vaccine-order boost; Shopify fills its revenue basket; AMC bows to online streaming’s growing power; Mexico’s oil giant puts on a brave face.

Corona Capital: Baseball, Gas cloud, Luxury goods

28 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Baseball’s Covid-19 cases put popular college sports competitions in jeopardy; a recovery in drilling for gas is bad news for the environment; Gucci and other luxury retailers finally embrace the digital revolution.

Trump’s Venezuela curveball smashes more norms

27 Jul 2020

The U.S. belatedly asked a district court to reverse a decision allowing the forced sale of shares in refiner Citgo – a crown jewel among Venezuela's assets. Despite D.C.’s weak logic and wishful premise, it could muck up the case. There may be broader damage, too.

PetroChina’s $38 bln sale unlocks reform and value

24 Jul 2020

The state-owned giant is spinning off its oil and gas pipelines in an overdue shake-up that will allow more private competition. The assets will be divested at twice the parent’s book value. It’s a reminder that Beijing can attain its goals without hurting minority shareholders.

Chevron snags Noble deal thanks to Anadarko miss

20 Jul 2020

The oil giant, which let Occidental impale itself on Anadarko last year, is lobbing a scant 7% premium for Houston’s $5 bln Noble Energy. While driller shares have rebounded, savings alone will account for half the bid’s value. Chevron can even afford to keep interlopers at bay.