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Natural Gas Demand Crashes - OilPrice.com

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Friday, June 12, 2020

1. Clean Energy out-performing the market

- Clean energy has outperformed the broader market since the downturn, despite the fact that renewable energy has been hit hard. Investors increasingly eye oil and gas firms with skepticism, and the 2020 collapse brought fears of peak demand into sharp relief.

- “There are ludicrous extremes such as Tesla Inc., but more down-to-earth stocks such as Danish wind pioneers Ørsted A/S and Vestas Wind Systems A/S or Florida’s NextEra Energy Partners LP also command multiples oil majors should envy,” Liam Denning at Bloomberg Opinion wrote.

- Ørsted A/S (CPH: ORSTED) and Vestas Wind Systems A/S (CPH: VWS) trade at 18.4 times Ebitda and 9.9 times, respectively.

- A new study from London’s Imperial College Business School found that renewable energy firms generated higher and less volatile returns to shareholders over 5 and 10-year timeframes.

2. Occidental cuts dividend and faces debt wall

- On June 5, Occidental Petroleum (NYSE: OXY) saw its share price soar by more than 30 percent, a record one-day increase in percentage terms for the company.

- But Oxy’s financial problems are substantial. Its purchase of Anadarko Petroleum in 2019 added around $40 billion in debt to the company.

- Oxy cut its dividend by 91 percent, down to just a penny per share. In March, Oxy cut its dividend at the onset of the downturn…

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