DGO.L, ESV, GALP.LS, GAZP.MM, KOS, RDSa.L, SLB, TOTF.PA
Dragon Oil (DGO.L)
New step towards asset base diversification and cash reserves deployment; Positive
16 January 2014 ¦ 7 pages ir.citi.com
Dragon Oil has signed a farm-in agreement into an offshore exploration block in
the Philippines, acquiring a 40% stake initially with the possibility to increase it up
to 50% later on. We welcome the move, which diversifies Dragon's assets base
and increases potential for a value-accretive deployment of its substantial
($1.9bn) cash reserve. We reiterate our bullish view on the stock and consider
current levels as a good entry point.
Ensco plc (ESV)
DS-9 Contract Rate Shows a Slumping Market for Deepwater Rigs
16 January 2014 ¦ 9 pages ir.citi.com
We have reduced our EPS estimates and lowered our price target from $72 to
$67 due to a later-than-expected contract start date on the ENSCO DS-9 and
incremental shipyard downtime or idle time on several rigs that was disclosed in
the company’s fleet status update released today. ESV remains our top pick
(rated BUY) in the challenged offshore drilling sector.
Galp Energia (GALP.LS)
2014 could be the year for Galp
20 January 2014 sendspace.com
Gazprom (GAZP.MM)
Groningen production to be cut even more than we expect? Possible upside for Gazprom
16 January 2014 ¦ 8 pages ir.citi.com
Reuters is reporting that the Dutch government will consider cutting production at
the giant Groningen field due to issues with subsidence, presumably the cause of
some tremors felt at the surface of up to 3.2 magnitude. Were gas production at
the field to be meaningfully cut, we would see Gazprom as being the primary
beneficiary, as in our analysis all non-Gazprom sources of gas for Europe have
already been fully tapped.
Kosmos Energy Ltd (KOS)
New Jubilee Field Constraint Prompts Lower Production Outlook
16 January 2014 ¦ 10 pages ir.citi.com
Royal Dutch Shell plc (RDSa.L)
Game Plan: the path is clear
Maintain O/P / TP unchanged at 2,350p
20 January 2014 sendspace.com
Schlumberger (SLB)
Getting the Party Started; Upgrading to Outperform, TP $108
20 January 2014 sendspace.com
Total (TOTF.PA)
Look What’s Coming Down the Pipeline; Upgrade to BUY
17 January 2014 ¦ 24 pages ir.citi.com
We raise our rating on Total from Neutral to Buy, and raise our intrinsic fair value
(DCF) from €46 to €50/share. While the equity has seen modest outperformance
over the last 12 months (+6% Euro market, +2% Big Oil), that turnaround comes
after five years of significant underperformance against both indices (2008-2012).
We think the valuation does not discount delivery on a visible medium-term
pipeline, which we estimate can deliver a c. 200 bps improvement in ROE and
double-digit FCF yield by 2017 |
