The three largest integrated oil companies in Europe – BP ( BP ), Shell ( SHEL ) and TotalEnergies ( TTE ) – are currently trading at a price of more than 40% to their US counterparts, according to analysts at Citi, which. give suggestions the time may be right for US oil giants such as Exxon Mobil (NYSE: XOM) or Chevron (NYSE: CVX) to move.
“The prize pool for US IOCs seems to be bigger, the higher the cost comes from being able to get less money. [cost of equity] and the cost synergies we estimate [net present value] which is in the region of 15%-30% of the capital market,” Citi said on Wednesday.
Europe’s political leaders may object, “but having already given the case against oil, it seems unlikely that they will intervene,” Citi said.
In the hands of the US, European companies will not spend much on low-carbon food, “a business sector that is likely to be a waste of money for European IOCs in the coming years,” the bank said.
Exxon Mobil (XOM), whose shares trade about a dollar off their all-time high, is a “bull trap ahead of Q4,” The Asian Investor writes in a recently posted analysis of Seeking Alpha.