X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 32 mins U.S. Presidential Elections Status - Electoral Votes
  • 11 hours Interest article about windmills and waterwheels in Europe
  • 6 hours Retired RAF pilot wins legal challenge over a wind farm
  • 2 days NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 1 day Speaker Pelosi, "Tear Down This Wall"
  • 22 hours Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
  • 2 days Disaster looming in UK offshore wind power
  • 2 days Wednesday Nikki Haley reached out to Trump for meeting at Mar-a-lago. Trump said No ! You blew it Nikki . . .
  • 20 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 2 days Scientist clone endangered Black Footed Ferret from Ferret that died 30 years ago . It's a 100% exact genomic match.
Should You Follow Buffett Into Energy Stocks?

Should You Follow Buffett Into Energy Stocks?

Buffett has lately been doubling…

Oil Major Total Makes Big Bet On Green Hydrogen

Oil Major Total Makes Big Bet On Green Hydrogen

French supermajor Total looks to…

Editorial Dept

Editorial Dept

More Info

Premium Content

The Death Of Oil Dividends

1. Big Oil dividends at risk

- The collapse of oil prices puts dividends at risk. Equinor (NYSE: EQNR) became the first large oil company to cut its dividend, slashing it by two-thirds this week from $0.27 per share to just $0.09.
- There is going to be tremendous pressure on dividends of other oil majors, who have seen their yields spikes as their share prices nosedived this year.
- As a group, the five majors – BP (NYSE: BP), Chevron (NYSE: CVX), ExxonMobil (NYSE: XOM), Royal Dutch Shell (NYSE: RDS.A) and Total (NYSE: TOT) – barely covered their dividends with cash flow in 2019. Brent averaged $64 per barrel last year.
- ExxonMobil has borrowed billions of dollars in recent weeks, suffered credit downgrades, and has steadfastly refused to touch its dividend. “A dividend that erodes the balance sheet, thereby raising the risk premium, stops being a down-payment on value and ultimately becomes a drag on it,” Liam Denning writes in Bloomberg Opinion.

2. Consolidation set to hit U.S. shale

- The oil industry “delivered its best corporate returns in periods of consolidation, financial tightening and rising barriers to entry,” Goldman Sachs said in a research note.
- “We believe this environment (and shareholder pressure for de-carbonisation) could engender a similar phase of consolidation and capital discipline, as in the late 90s,” the bank said.
- After the 2014 downturn, consolidation…





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News