Just a chart showing a comparison of the Delta between BP, Brent, and a US shale-exposed play (MRO) vs Goldman Sachs 2021 Targets.
The implication is that there is still value left in European Oil Majors and particularly in US shale given the rebound in oil prices. I do not try to examine balance sheets or earnings at all. To me, these are lagging indicators behind the almighty price of oil.
It is worth noting that MRO and other shale plays like Apache and Diamondback seem to fall harder than crude but also rise faster in a bull market. Should oil reach all time highs next year in a manner echoing the year after the Spanish Flu, this could still be a very good time to get into APA/MRO and other shale survivors. And it's hard to go wrong with European oil majors: BP, Total, RDS.A at this point at a time when the S&P 500 and Nasdaq are nearing or surpassing all time highs despite a damaged earnings picture at least a year out in most sectors.
The implication is that there is still value left in European Oil Majors and particularly in US shale given the rebound in oil prices. I do not try to examine balance sheets or earnings at all. To me, these are lagging indicators behind the almighty price of oil.
It is worth noting that MRO and other shale plays like Apache and Diamondback seem to fall harder than crude but also rise faster in a bull market. Should oil reach all time highs next year in a manner echoing the year after the Spanish Flu, this could still be a very good time to get into APA/MRO and other shale survivors. And it's hard to go wrong with European oil majors: BP, Total, RDS.A at this point at a time when the S&P 500 and Nasdaq are nearing or surpassing all time highs despite a damaged earnings picture at least a year out in most sectors.