Senior Vice President William Rowe of First Financial Trust and Asset Management says that right now there are buying opportunities in the energy sector, and Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) are the strongest in the space.
Oil names have really taken it on the chin here. As you go down the food chain, a lot of the energy credits are now trading at the distressed levels. And going up to maybe the strongest two credits in that space, which would be Exxon and Chevron. Those prices have come down, and those spreads have widened pretty substantially because of everything that’s going on. And when times get rough, that typically provides some very good buying opportunities.
Rowe says that when it comes to balance sheets, Chevron and Exxon’s are excellent.
At this point in time in the market, it’s all about balance sheet. How strong are you? Do you have the ability to weather the storm? And without a doubt, those two companies do.
There’s going to be a lot of companies that don’t make it out of this. That’s the beauty of this also is that because there is so much stress in the market, it really doesn’t matter if you’re Exxon or Chevron, or if you’re a lower-tier company. The pricing is getting very negative. So moving into the top credits within that space provides very attractive entry points.
Peter Havens of Baldwin Management Picks From Royal Dutch Shell (ADR), Exxon Mobil (NYSE:XOM) or Chevron (NYSE:CVX)
July 02, 2017
Chevron Corporation (CVX) and Exxon Mobil Corporation (XOM) Show Dividend Growth Rates Up to 12%
July 08, 2013
Exxon Mobil Corporation (NYSE:XOM) Earning Its Cost of Capital to Pay Dividends
October 13, 2016
Exxon Mobil Corporation (XOM) Outperforms Peers When Oil Prices Decline
January 04, 2013
Exxon Mobil Corporation (XOM) Holds Best Assets and Trades Below Appraised Fair Value
April 03, 2013
