The Energy Report
Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
Credit Suisse Upgrades Shell to Outperform
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KIM FUSTIER, Credit Suisse
(01/31/2011)
"Upgrading to Outperform: We are raising Shell to OP from Neutral and increasing our TP to 2,560p. We believe Shell is only at the start of a multiyear turnaround in cash-flow generation led by the heavy investments of the past five years. Shell should deliver the best CF growth among big-cap integrated oils over 2010–15 (42% vs. 27% avg.) and we believe this growth is not fully priced in. More importantly, we think Shell can sustain an attractive 9% free cash yield over 2012–15 despite rising capex. Investment Case: We believe investors should reward companies where free cash-flow growth is within sight. Shell's upstream cash flow is set to grow by 30% over the next two years thanks to mega projects Pearl GTL, Qatargas 4 and Jackpine; Pearl alone should generate CAD$6B of annual CF in 2013. We believe this cash-flow growth is sustainable until at least 2015 given the duration of cost recovery on PSCs. Shell's investment cycle is not over, and the company will need to raise capex again to $30B to fund the next wave of projects (Australian LNG, NAM shale gas), but not before 2013–14. Finally, Shell has above-average earnings exposure to a cyclical recovery in refining and chemicals." |
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
More Experts
"FCU's deal with CGN helps to financially and technically derisk PLS." (12/21/15) Fission Uranium Corp. - David Talbot, More >
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"FCU intends to sell $82M or 19.9% of the company to CGN Mining." (12/22/15) Fission Uranium Corp. - Jeb Handwerger, Gold Stock Trades More >