- Investors should stick with big oil companies such as Total (NYSE:TOT), ConocoPhillips (NYSE:COP) and Statoil (STO) who have the most room for self-help, Citigroup analysts say.
- The firm believes the messaging in Q3 results could prove more important for equity performance than the numbers themselves, and managements need to be seen to be responding to current low return on equity and other factors such as recent debt downgrades; bigger cuts to costs and capital seem inevitable as the oil and gas industry looks to deepen its commitment to repair.
- Citi cites TOT as an industry-leader on a self-help agenda, and at its recent strategic update set a benchmark for what the industry needs to achieve; the firm says it continues to see value in "self-help winners" TOT, STO and COP, while also recommending BG Group (OTCQX:BRGXF, OTCQX:BRGYY) as a cheaper way into Royal Dutch Shell (RDS.A, RDS.B).