(COMTEX) B: THE WALL STREET TRANSCRIPT PUBLISHES OUTLOOK FOR ENERGY I
B: THE WALL STREET TRANSCRIPT PUBLISHES OUTLOOK FOR ENERGY IN 2000
NEW YORK, Feb 24, 2000 /PRNewswire via COMTEX/ -- Lysle Brinker, Senior
Vice President at John S. Herold, Robert Gillon, Vice President at John
S. Herold, and John Parry, Vice President at John S. Herold, discuss
the outlook for Energy Companies in this timely and deeply informative
7,300-word interview from The Wall Street Transcript (212/952-7433) or
twst.com
1) In a vital review of this evolving sector for investors and industry
professionals, this Outlook Energy in 2000 features an in-depth
analysis of the sector by leading experts, Lysle Brinker, Senior Vice
President at John S. Herold, Robert Gillon, Vice President at John S.
Herold, and John Parry, Vice President at John S. Herold.
Brinker, Gillon, and Parry discuss the outlook for major oils, E&P
companies, refiners and marketers, recent mergers in the sector, and
offer their current stock recommendations.
On the refiners and marketers issue, Parry explains: "Last year, Sunoco
(NYSE: SUN) lost money in their refining operations, but more than
compensated for it in their related chemical and retail marketing
activities. It's the world competitive pressures and the overhang of
above-ground inventory, which OPEC was trying to get rid of by its
production cutbacks, that was at the root of this. With refined product
stocks now at a much-reduced level, we expect that this segment will
look a little better as we go forward. The stock market seems to be
anticipating this judging by favorable relative performance of the
independent refining sector to date in 2000"
Brinker states: "With the largest mergers that have been completed --
BP Amoco (NYSE: BPA) and Exxon Mobil (NYSE: XOM) -- it's too soon to
tell if these are really going to be much more profitable ventures for
the companies than if they had not merged. Right now the stock market
is anticipating that they will be more effective competitors over the
long term and more profitable than those that have not merged."
According to Gillon, "Total Fina (NYSE: TOT), in combination with Elf
Aquitaine (NYSE: ELF), may be getting into position to challenge the
three giants and, on that basis, could be one that an investor should
keep an eye on."
Parry continues, "A refiner like Tesoro (NYSE: TSO) has made a decision
to get in bed with Wal-Mart (NYSE: WMT) on the West Coast and start
building supermarket gas stations -- which, of course, killed the
industry in Europe. So that's a strategy they're going to try to employ
in this country. A company like Phillips (NYSE: P), rather than merge,
has proceeded to joint venture two of its major businesses, gas
processing with Duke Energy (NYSE: DUK) and chemicals with Chevron
(NYSE: CHV), to enhance its competitive position. In the process
Phillips raised a couple of billion dollars, which will significantly
reduce their debt burden."
Gillon recommends Anadarko Petroleum (NYSE: APC) and Evergreen
Resources (Nasdaq: EVER) as he states: "Anadarko Petroleum is a very
successful worldwide explorer with assets in the Gulf of Mexico, Alaska
and Algeria that appear to have significant upside potential. Evergreen
Resources is a much smaller niche player whose only production comes
from coal seam methane wells in southeastern Colorado. Very profitable
growth for Evergreen looks to be possible for the next five or six
years."
Gillon adds, "Royal Dutch Shell (NYSE: RD) is obviously capable of a
very large acquisition, but there are no strategic requirements that
they do so. Cost reductions could easily lead to continuing gains in
income."
Parry continues, "In the downstream business, you may want to look at
the relatively large exposure offered by mid-sized integrated
USX-Marathon (NYSE: MRO). There are a number of issues with Marathon
that could be very interesting. Also, as one of the most leveraged to
downstream among the integrateds, you could eventually have a spinout
of the recently formed Marathon-Ashland (NYSE: ASH) joint venture as a
value creation opportunity."
Parry concludes with Triton Energy (NYSE: OIL) as a final
recommendation: "Interestingly, Triton is one of a relatively small
universe of E&P companies that is actually generating net income to the
bottom line with excellent visibility for growth and value creation."
To obtain a copy of this insightful 7,300-word report, call
212-952-7433 or see twst.com
This 90-page Natural Gas Transmission & Distribution Issue also includes:
2) Natural Gas Transmission & Distribution -- In an in-depth Analysts
Roundtable (18,900 words) Ronald Barone, Managing Director at
PaineWebber, Donato Eassey, First Vice President of Merrill Lynch where
he is a member of the Merrill Lynch Fundamental Equity Research
Department, David Fleischer, Managing Director with Goldman Sachs,
where he is on the Investment Policy and Stock Selection Committees,
and Curt Launer, Vice President, Equity Research at Donaldson, Lufkin &
Jenrette examine the industry outlook, sector performance, convergence
& consolidation, diversification, Canadian pipelines, overseas
competition, management performance, supply & demand, regulatory
outlook, growth sectors and specific stock recommendations.
3) Local Distribution Companies -- In an in-depth Analyst Interview (3,
500 words), David Maccarrone, Securities Analyst with Goldman Sachs,
examines investing in local distribution companies, their strong
near-term earnings outlook, the excellent prospects for more takeovers
as a result of the continuing convergence of gas and electric
companies, nonregulated LDCs, increased energy demand, new
technologies, impact of the Internet, M&A activity, P/E ratios and
shares specific stock recommendations.
4) The TWST confidential Off-The-Record survey of management
performance at 19 Natural Gas firms asked market insiders about the
ability of management teams to create shareholder value.
Firms reviewed in Off-The-Record include Atmos Energy, The Coastal
Corporation, Columbia Energy Group, Duke Energy, Dynergy, El Paso
Energy, Energen, Enron, Equitable Resources, KeySpan, Kinder Morgan
Energy Partners, National Fuel Gas Company, New Jersey Resources
Corporation, Peoples Energy, Questar Corporation, Semco Energy,
Transcanada Pipelines Limited, Washington Gas Light Company, The
Williams Companies.
5) Ten extensive (average 2,500 words) CEO Interviews with top
management from the following sector firms discussing their future
plans and outlook for their firm and the Natural Gas Transmission &
Distribution sector:
Atmos Energy, Daugherty Resources, Enterprise Products Partners,
KeySpan, MarkWest Hydrocarbon, National Fuel Gas Company, Northern
Border Partners, Northwest Natural Gas Company, South Jersey
Industries, Southwestern Energy Companies.
The Wall Street Transcript is a premier weekly investment publication
interviewing market professionals for serious investors for over 36
years. Available at twst.com, TWST Online provides free
interview excerpts. For recent recommendations by analysts and money
managers visit twst.com
Do a free search of the extensive TWST Archives at
twst.com
The Wall Street Transcript does not endorse the views of any
interviewee nor does it make stock recommendations.
SOURCE The Wall Street Transcript
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Peter McLaughlin of The Wall Street Transcript, 212-952-7433
WEB PAGE: twst.com
GEOGRAPHY: New York
INDUSTRY CODE: MLM
OIL
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