Company News

Chevron Best Positioned IOC Following Oil Price Collapse

Rigzone
08/09/2016 13:43
Visualizações: 882 (0) (0) (0) (0)

 

Chevron is the best strategically positioned integrated oil company following the collapse in oil prices in 2014, according to a report from investment bank Jefferies.

 

The report used 13 operational and financial criteria to determine which of the IOCs were best positioned and conversely, which had the most question marks.

 

“Chevron stands out as the best-positioned company in the sector as a result of its leading upstream production growth, resilient downstream and strong balance sheet,” said oil and gas analysts at Jefferies in a brief research note sent to Rigzone.

 

The most preferred names among Jefferies included Galp and Shell, with the least preferred consisting of Repsol and Statoil.

 

“Repsol faces the most challenges; a lack of production growth, low upstream margins, low free cash generation and low cash returns to shareholders,” said analysts at Jefferies.

 

The collapse in oil prices over the last two years has required significant action from the integrated oil sector, including deep cuts in capital spending, major restructurings to reduce cash operating costs and dividend cuts.

 

“Cutting costs and stretching balance sheets are tactics for navigating what has been a largely unforeseen low oil price environment, but they can lead to medium-term strategic consequences,” said Jefferies.

 

The investment banking firm stated that the industry’s capital spending cuts and operating cost reductions have dramatically reduced the oil price necessary to fund dividends with organic cash flow and revealed that it expects the future Upstream capital spending required to achieve production growth for the sector would be $170 billion – versus Jefferies’ average capital expenditure estimate to 2018 of $130 billion.

 

Jefferies believes that Brent oil will average $58 per barrel in 2017 and $72 per barrel in 2018.

Most Read Today
see see
International Women's Day
Female Leadership in the Chemical Industry: Braskem Rein...
10/03/25
International Women's Day
Women in the Electric Sector: Driving Advances and Trans...
10/03/25
Merger
Saipem and Subsea7 join forces to create Saipem7
25/02/25
Royalties
Values related to December's production for production-s...
24/02/25
Drilling Operations
Constellation Oil Services Holding S.A. announces intent...
21/02/25
Permanent Offer
CNPE Approves Inclusion of Four New Pre-Salt Blocks in t...
21/02/25
Royalties
Values related to December production for concession and...
21/02/25
Natural Gas
Eneva and Samarco Sign Contract for Natural Gas Supply i...
21/02/25
Results
Four FPSOs operated by MODEC rank among the 10 largest o...
20/02/25
Record
Fulkrum Achieves Record Growth in 2024 with Global Expan...
20/02/25
Results
Foresea Closes 2024 with a Net Profit of $18 Million and...
20/02/25
Results
Sergipe Maintains 1st Place in the Free Gas Market Ranking
10/02/25
International Company News
Interocean awarded Morgan, Mona, and Morven Offshore Win...
06/02/25
Natural Gas
ANP approves prior consultation aiming at new regulation...
06/02/25
Permanent Offer
Permanent Sharing Offer (OPP): ANP approves update of th...
06/02/25
Paraná
Renewable energy with savings of up to 35% drives the ex...
06/02/25
Pre-Salt
PPSA launches a new spot sale process for Union oil carg...
06/02/25
RD&I
Research Discovers Enzyme That Converts Corn Ethanol Dis...
06/02/25
Results
Petrobras reaches 2024 annual production target
28/01/25
International Company News
Pipetech Launches Game-Changing Downhole Scale Remediati...
28/01/25
Geology
Investments totaling R$ 271 million are boosting researc...
28/01/25
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.