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How the break-up of ConocoPhillips could lead to similar moves by oil conglomerates like BP and Exxon Mobil, forever changing the energy landscape.
Even though ExxonMobil pumps oil, it can't guarantee that its refining unit will be able to profitably process a barrel into gasoline or heating oil.
Pure-play revivalInvestors who wanted exposure to the oil and gas sector noticed this disconnect. As they put more money in the smaller, pure-play companies that focused on one industry vertical, Big Oil began to trade at a discount. In fact, since the merger mania of 2000, Big Oil has traded at an average discount of between 11% and 12% compared to their smaller pure play competitors, according to a recent study by Citi Investment Research and Analysis.
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