Why Chevron And Shell Are Better Bets Than BP and Exxon

Oilprice.com ^ | 06-07-2016 | Oil Major

[bananaman22]

Want to invest in the oil majors? Take a look at Chevron and Royal Dutch Shell, but steer clear of ExxonMobil, BP, and Total.

That is the conclusion from a new analysis from Tudor, Pickering, Holt & Co., which identified Chevron and Shell as the best of the lot. The reason for choosing Chevron, for instance, is that the American oil major will have high-margin growth, largely due to the completion of several large-scale projects. The Gorgon LNG project is one example – with huge capex requirements behind it, Chevron will enjoy free-cash-flow turnaround. Tudor Pickering Holt also likes Chevron’s “top quality” Permian Basin assets.

For Shell, it is much more about the dividend, which Tudor Pickering describes as “safe.” Shell is in the midst of a $30 billion asset sale, which could be difficult to pull off. But Tudor Pickering is more optimistic, calling the disposal campaign “achievable,” helping Shell to slash its debt pile and return to share buybacks.

[napscoordinator]

I use Shell all the time. That is my go to gas station. The gas perks from Winn Dixie help.