Oil & Gas

Gazprom payout pledge yet to catch fire

31 May 2019

After a management shake-up, the $78 bln gas company says it will pay out half its net income in dividends in coming years. That would please the state, which has been pushing the issue. But the implied dividend yield of 15% suggests investors doubt the bonanza will happen.

Viewsroom: A new game of carmaker matchmaker

30 May 2019

Fiat Chrysler spurned Peugeot by offering to merge with France’s Renault, which is itself joined to Nissan. How will the pairings play out, and what does it mean for the automotive sector? Plus: Why fossil-fuel giants like BP are painting themselves a pale shade of green.

Chevron’s North Sea deal eases its wounded pride

30 May 2019

The U.S. oil major has sold its assets off the British coast for $2 bln, at a better valuation than recent deals have fetched. Buyer Ithaca should still make a decent return. Chevron shows it hasn’t completely lost its dealmaking nous after being jilted at the altar by Anadarko.

BP vote pours gas on Exxon’s climate fire

21 May 2019

Owners of at least a quarter of the U.S. oil major’s shares backed the overwhelming vote for more emissions pledges from its UK rival. BP’s support helped, but the result also shows the growing power of climate activists. Exxon’s decision to fight them now looks even more risky.

Oil market constrains Trump’s Iran war talk

21 May 2019

The U.S. president’s belligerent stance towards Tehran belies his dislike of costlier crude. While Saudi Arabia could increase output, it’s an imperfect hedge to the squeeze that would follow a conflict. Tight supply means Trump has little leeway for more than sabre-rattling.

Viewsroom: Oil M&A fight may end with no winner

9 May 2019

Occidental boss Vicki Hollub corralled BofA CEO Brian Moynihan and investor Warren Buffett to her side to seal a $38 bln offer for Anadarko. Her tactics scared off rival bidder Chevron but may alienate her own shareholders. Plus: Malaysia’s reform efforts since the 1MDB scandal.

Oxy wins Anadarko, and two years of questions

9 May 2019

Chevron will collect a $1 bln break fee rather than topping its rival’s $38 bln bid for the U.S. shale driller. Some Occidental owners will protest the lack of a vote on the deal at Friday’s annual meeting. Greater pressure may come in 2020 if the merger isn’t getting into gear.

Private equity’s North Sea bet safer than it looks

9 May 2019

Buyout groups are pumping billions of dollars into the hydrocarbon field off the UK’s eastern coast, as oil majors depart. Peak fossil fuel demand and decommissioning costs complicate the usual private equity exit strategy. But the acquirers also have ways to minimise the risks.

Exxon becomes test of investors’ carbon capture

6 May 2019

New York State and the Church of England want to split the chair and CEO roles and oust the board after the $328 bln U.S. oil giant squashed their emissions-reduction push. They have won peers over in other climate fights, but taking on Exxon’s top brass may be too much for many.

Refined Occidental bid leaves one box unchecked

5 May 2019

The $43 bln U.S. oil driller upped the cash in its offer for rival Anadarko. Financing from Warren Buffett and a side-deal to sell assets to Total make it look deliverable. Dispensing with a vote by Oxy shareholders should boost the bid too, though not investors’ peace of mind.

Shell’s low-carbon shift yet to charm investors

2 May 2019

The Anglo-Dutch group had a more profitable quarter than Exxon and is better placed for a greener future. But its valuation lags that of its U.S. peer, which finds more new reserves. Investors seem to care more about how much oil is pumped now than when crude demand will peak.

The battle for Anadarko: run the numbers

1 May 2019

Weigh up Occidental and Chevron’s competing cash and stock offers to adjust for the bidder’s underlying value, and how much value they can create.

Occidental is winning Anadarko battle by a mile

1 May 2019

The Texan shale producer’s stock has slumped since it offered $38 bln for its rival. The tie-up would rely on cutting costs in a single region, unlike a lower rival bid from Chevron. Yet even if Anadarko shareholders discount Oxy’s stock and planned savings, they’ll do better.

Buffett digs sweetest well in U.S. shale patch

30 Apr 2019

Berkshire Hathaway is putting up $10 billion to help Occidental fund its $38 billion bid for Anadarko. It’s a vote of confidence in Oxy’s unsolicited offer. As usual, though, the best deal will go to Warren Buffett himself, who can still win even if other shareholders lose.

Cash is the real prize in oil-patch showdown

26 Apr 2019

Forget diversification and other strategic chimeras as the rationale for Chevron and Occidental’s $38 bln battle for shale driller Anadarko. It’s all about sating oil investors’ irrational fixation on dividends. Bigger Chevron can pay more, Occidental has the greater need.

Shell has cover to take the high ground in Brunei

26 Apr 2019

A shareholder group wants the $260 bln energy giant to use its clout in the tiny Asian state to press for gay rights. Shell will be cautious of fallout elsewhere, but talks are possible. It has the leverage to open meaningful dialogue too. A fix, though, won’t be quick.

Occidental gives Anadarko an ill-judged bear hug

24 Apr 2019

Its $38 bln cash-and-stock offer trumps bigger rival Chevron’s bid for the U.S. oil producer, is a two-thirds premium and in theory helps both sides. Yet Occidental’s shares are less attractive and its debt would jump. Chevron only need sweeten its offer a bit to regain its edge.

Saudi Arabia will feel Trump’s Iran slap too

22 Apr 2019

The U.S. president will fully enforce sanctions on Tehran’s oil exports. Riyadh must pump more to prevent crude prices spiking further, which it has the scope to do. But doing Trump’s bidding will rankle OPEC peers. And the administration has a track record of changing its mind.

Aramco sale would grease Mukesh Ambani’s tidy-up

18 Apr 2019

The Saudi oil giant is eyeing a stake in the energy assets of the tycoon’s $127 bln Reliance Industries. That would aid Aramco’s strategic ambitions. It would also mean India’s biggest listed group could keep expanding its consumer-to-oil businesses without adding too much debt.

Notre-Dame melts France’s philanthropic froideur

16 Apr 2019

Luxury tycoon Bernard Arnault and oil giant Total are among those to have pledged a total of more than 600 mln euros to rebuild the fire-ravaged cathedral. France lags Germany and the UK for charitable giving. But restoring a national treasure makes moral and financial sense.