Stifel's view of Energy Sector - October 7
Posted: Mon Oct 07, 2019 9:02 am
Energy & Power - Stifel's Crude But Refined Thoughts: U.S. Energy Tour Recap - Derrick Whitfield
"During the week of September 23rd, we hosted a group of investors for a week of meetings in Dallas, Midland, and Houston. Following the event, we have greater conviction in our capital discipline and M&A themes for the Upstream sector, our “Darwinism in the Oil Patch” view for the OFS sector, and our producer-led LNG call for the Shipping sector. Regarding capital discipline, we expect U.S. onshore to be flat to down 5% in 2020. Regarding M&A, we believe top-down and bottoms-up consolidation remain in play in the Permian and note upcoming RBL redeterminations could serve as a catalyst for bottoms-up consolidation. Regarding LNG, we believe producers are “lining up” to sign contracts similar to the ones announced by APA and EOG. In our view, these developments in aggregate increase our conviction on CXO(Buy, $64.60), ET(Buy, $12.90), NBL(Buy, $20.59), NVGS(Buy, $10.48) and SLB(Buy, $31.88)."
RBL = Review of Bank Lines of credit
"During the week of September 23rd, we hosted a group of investors for a week of meetings in Dallas, Midland, and Houston. Following the event, we have greater conviction in our capital discipline and M&A themes for the Upstream sector, our “Darwinism in the Oil Patch” view for the OFS sector, and our producer-led LNG call for the Shipping sector. Regarding capital discipline, we expect U.S. onshore to be flat to down 5% in 2020. Regarding M&A, we believe top-down and bottoms-up consolidation remain in play in the Permian and note upcoming RBL redeterminations could serve as a catalyst for bottoms-up consolidation. Regarding LNG, we believe producers are “lining up” to sign contracts similar to the ones announced by APA and EOG. In our view, these developments in aggregate increase our conviction on CXO(Buy, $64.60), ET(Buy, $12.90), NBL(Buy, $20.59), NVGS(Buy, $10.48) and SLB(Buy, $31.88)."
RBL = Review of Bank Lines of credit