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BUY
Exxon (XOM-N) versus Conoco (COP-N). Exxon has the best capital discipline of the US majors. Has a very high return on capital employed (ROCE). Conoco is one of the worst, largely because they overpaid for some of their acquisitions. Haven't had particularily good numbers on their refining and marketing side.
integrated oils
DON'T BUY
Exxon (XOM-N) versus Conoco (COP-N). Exxon has the best capital discipline of the US majors. Has a very high return on capital employed (ROCE). Conoco is one of the worst, largely because they overpaid for some of their acquisitions. Haven't had particularily good numbers on their refining and marketing side.
integrated oils
DON'T BUY
As a longer term hold it's probably OK. Has been a great performer for some time. All of these pipeline assets in general have limited upside right now. Hard to see where the growth is going to come from. Enbridge is adding 5 new pipelines, which means they are going further and further out on the risk scale.
oil
gas pipelines
TOP PICK
In addition to the oil sands, portfolios should have some well chosen juniors and the focus on juniors should be on tight gas formations and the companies that exploit them. Experienced management team. Has increased production substantially every year. Clean balance sheet. Trades at a reasonably cheap multiple.
oil
gas
BUY
An interesting story. Has been hugely undervalued because of the whole political risk associated with where its operations are. Their problems would all be solved in the Chinese, the government or Lukoil acquired them. Think they will get a deal done and will pay 10/15% over its current price.
oil
gas
