Close menu

December 4th, 2023 | 07:40 CET

BP, Saturn Oil + Gas, Occidental Petroleum - New opportunities from OPEC+

  • Mining
  • Oil
  • Energy
Photo credits:

With the decision by the oil cartel OPEC+ to further reduce production in the first quarter of next year, oil prices continued their correction that has been ongoing for weeks. Russia and OPEC+ announced their planned cuts at a total of 2.2 million barrels per day. The current decline in the oil sector offers investors an opportunity to participate in the expected long-term upward trend at more favorable prices.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: BP PLC DL-_25 | GB0007980591 , Saturn Oil + Gas Inc. | CA80412L8832 , OCCIDENTAL PET. DL-_20 | US6745991058

Table of contents:

    BP - Green alternatives

    Although profits from black gold are still booming, international oil giants, in particular, are looking to enter green technologies. ExxonMobil, for example, sees itself as a future supplier of electromobility and recently acquired drilling rights for a lithium deposit in the southern US state of Arkansas.

    British energy giant BP, which generated a surplus of almost USD 40 billion in 2022, is also looking for new footholds and is continuing to invest in the renewable energy sector. With the remaining acquisition of 50.03% of the solar power joint venture BP Lightsource, the British company is seeking to secure complete control of one of the leading solar and battery storage system developers for around GBP 254 million. BP Lightsource specializes in the development, engineering, construction and management of large-scale solar and battery storage projects.

    In recent years, the Company has grown exponentially, has developed 8.4 gigawatts of solar capacity and has a 61 GW development pipeline. The investment bank Barclays continues to assign a price target of GBP 1,000 to the BP share due to the planned overall takeover. The purchase price of around GBP 500 is well within the oil and gas group's capital framework. With this step, BP is underpinning its strategy concerning decarbonization.

    Saturn Oil + Gas - Significant discrepancy to the peer group

    The Canadian oil producer Saturn Oil & Gas has made several acquisitions over the past two years and is actively optimizing the acquired properties. The figures for the third quarter of the fiscal year 2023 demonstrate impressive successes. A new record was set with a free cash flow of over CAD 100 million. The curve for the current production of 26,000 oil equivalents, including gas per day, rose just as steeply.

    Sales after nine months amounted to CAD 508.5 million compared to CAD 201.1 million in the same period of the previous year. Adjusted cash flow per share was CAD 1.62 due to the increase in the number of shares. After nine months of 2022, this was CAD 1.72 per share.

    A further 18 drilling fields were developed in the third quarter. The goal of the management around CEO John Jeffrey in the fourth quarter is to further accelerate development activities in both Alberta and Saskatchewan. Currently, three drilling programs are running in parallel.

    The currently favorable valuation of Saturn Oil & Gas compared to its peer group is striking. At a share price of CAD 2.25, the price/cash flow ratio is around 1.1, compared with a ratio of between 4 and 5 for comparable companies.

    Anyone interested in learning more about the oil producer's business model will have the opportunity to listen to Vice President Kevin Smith at the 9th International Investment Forum on December 5. Click here for free registration.

    Occidental Petroleum - On the verge of a major acquisition

    The M&A wheel in the oil sector continues to turn. OXY, backed by Warren Buffett and Berkshire Hathaway and in which the holding company owns 26%, is also on the verge of acquiring a target. However, this is not a strategic shift towards a GreenTech company. Instead, the US company is planning to expand its core business with CrownRock, a major oil producer from Texas. According to Fitch Ratings, the Company produces around 150,000 barrels of oil equivalent per day.

    CrownRock has more than 80,000 acres in the northern part of Texas's Midland Basin, which is part of the Permian Basin, the largest oil-producing region in the United States. The Company is led by renowned Texas businessman and billionaire Timothy Dunn and is backed by private equity firm Lime Rock Partners. In the Permian region, CrownRock, along with Endeavor Energy Resources, is one of the last major private companies.

    The "Wall Street Journal" reported ongoing talks regarding the purchase of the Permian Basin producer. The purchase price is said to be well over USD 10 billion, including debt.

    BP continues its plan to transform into a greentech company through acquisitions in renewable energy. On the other hand, OXY aims to strengthen its core business through inorganic growth. At Saturn Oil & Gas, the impact of the acquisitions is evident, resulting in record-breaking results.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

    Related comments:

    Commented by Armin Schulz on May 21st, 2024 | 07:15 CEST

    K+S, Globex Mining, Barrick Gold - Commodity stocks: Make money now

    • Mining
    • Gold
    • Commodities
    • fertilizer

    The commodities market in 2024 is characterized by high volatility, driven by strong demand, supply bottlenecks, and technological shifts to renewable energy, which make lithium and copper, for example, more expensive. In addition, inflation concerns make precious metals attractive as a hedge against inflation, while the central banks' interest rate policy is also a factor. Geopolitical tensions further disrupt supply chains and drive up prices. In this context, investments in commodity shares are becoming increasingly important. This form of investment allows investors to benefit indirectly from price fluctuations and the increase in the value of commodities without having to physically invest in the commodities themselves. We are, therefore, looking at three commodity companies today and analyzing their potential.


    Commented by Stefan Feulner on May 21st, 2024 | 07:00 CEST

    Lynas, Almonty Industries, General Motors - Is the trade war escalating, and what is Tesla doing?

    • Mining
    • Tungsten
    • Electromobility
    • RareEarths

    The stock markets continue their record-breaking run. The Dow Jones Industrial has climbed to the 40,000-point mark for the first time in its history, and the DAX is also on the verge of breaking through the 19,000-point barrier. So far, so good, one might say. However, something is brewing in the background with regard to the trade war between the US and China, which could put enormous pressure on company margins in the future. As a result, critical commodities, in particular, are likely to be on the verge of a strong upward impulse.


    Commented by Juliane Zielonka on May 17th, 2024 | 07:00 CEST

    Almonty, Rheinmetall, Super Micro Computer - Commodity rally for defense and cloud

    • Mining
    • Tungsten
    • AI
    • Defense

    AI and defense stocks are setting the stock market on fire. Investors worldwide seem to have acquired a taste for artificial intelligence and defense. Wall Street is expecting a four-digit price target for Super Micro Computer soon. Rheinmetall is also enjoying full order books. Since the takeover of a Spanish ammunition manufacturer, production has also increased in this segment. Meanwhile, tensions between the largest economies, the USA and China, are growing enormously, which is reason enough for investors to take a look at Almonty Industries. The tungsten producer is on course for growth thanks to the restart of a mine in South Korea. Tungsten is rising in value as the increase in AI, and armaments are directly boosting demand for the rare earth metal. Who will win the stock market race?