03-07-2020, 09:23 AM
(03-06-2020, 08:40 PM)fenders53 Wrote: Oxy should be the one to pickup the shale slack when the smaller get squeezed out and demand returns. What happens to our big oil share prices until then might not be pleasant for us longs. We will have to see if opec and Russia cut production of run the frackers off now. They have not been threatening that to my knowledge.
I actually think OXY is in big trouble at <$40 oil. They took on tons of debt for the APC acquisition, and haven't been able to unload assets to repair the balance sheet like they'd hoped to because oil prices are so low. I haven't sold mine yet, and at this point I'll probably just hold it till the dividend is eventually cut. But if I was recommending to others in the current market, it would definitely be CVX or XOM first. EOG has a lower yield, but is also much stronger with the balance sheet.