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Recent Interviews

Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


25. March 2021 | 08:15 CET

Gazprom, BP, Saturn Oil + Gas: Which oil stock is the best?

  • Oil
Photo credits: twitter.com

The oil price has long since left the crisis behind. Even though North Sea Brent crude prices have fallen somewhat in recent days, the outlook remains bright. At a time when everyone is talking about renewable energy, market experts emphasize that fossil fuels will continue to play an important role in the world. The energy transition is a process, not an event. Above all, oil producers that act sustainably could continue to score points. We present three stocks.

time to read: 3 minutes by Nico Popp
ISIN: US3682872078 , GB0007980591 , CA80412L1076


John Jeffrey, CEO, Saturn Oil + Gas Inc.
"[...] The Oxbow Asset now delivers a substantial free cash flow stream to internally fund our impactful drilling and workover programs. [...]" John Jeffrey, CEO, Saturn Oil + Gas Inc.

Full interview

 

Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author


Gazprom: The gas is flowing, one way or another

When investors think of energy stocks, the first names that come to mind are the big ones. BP is a familiar name, and so is Gazprom. Both stocks have already been able to profit in the wake of rising oil prices. Gazprom, in particular, also came through the phase well, in which oil prices were meager, and many market participants were already talking up the bankruptcy of many small companies. Currently, Gazprom is making a name for itself above all because of the North Stream 2 pipeline, which connects Germany directly with the production sites in Siberia and has become a political issue. Most recently, the new US Secretary of State called for the project to be stopped. Even if the construction stop would be a billion-dollar grave, Gazprom can get over such a development. The Company is already eyeing China and could simply deliver to the east instead of the west.

Both deliveries to China and sales to Europe have been going well for Gazprom recently. Rising energy prices should also continue to support the business. Gazprom has traded at a valuation discount for years and offers an attractive dividend - the stock currently yields around 6.6%. The share is and remains a standard stock, which nevertheless promises an above-average yield. However, investors should be aware of the deficits around sustainability and ESG criteria. Gazprom has some catching up to do in terms of transparency and environmental issues.

BP has sustainability fantasy - but not much else

BP, on the other hand, is somewhat further ahead. The Company, which still has to pay more than EUR 1 billion every year for the oil catastrophe in the Gulf of Mexico, has long since given itself a green makeover. The oil multinational now also offers wind farms. BP continues to try to divest business units that generate little revenue. This strategy is now bearing little fruit. Over one year, the share price has risen by 15%. In addition, the dividend yield is currently more than 5%. The BP share reflects the development of the oil market and has a little sustainability fantasy. However, the stock remains a rather dull standard stock.

Saturn Oil & Gas: The oil stock of the future

The Canadian oil producer Saturn Oil & Gas proved years ago that the oil business could also be a high-growth business. At that time, the Company was the most profitable oil company in Canada and showed strong organic growth. The reason: the Company operates in the Canadian province of Alberta, where it focuses on light oil from areas that have proven past productivity. Until the oil price crash more than a year ago, the Company grew rapidly because virtually every well was crowned with success. During the oil price crash and pandemic, the Company benefited from its high hedging ratio - Saturn had sold forward about half of its production by February 2021, securing an attractive pre-crisis price.

Saturn has since regained market competitiveness but is already looking to the future. Saturn has discovered sustainable oil production for itself and is pushing ESG criteria within the Company as well. Saturn wants to be a pioneer in environmental, safety and social issues. To ensure that more women have access to the oil industry in the future, the Company offers internships for female students only. However, the most significant step into the Company's future is likely to be the consistent implementation of the growth strategy announced months ago. Saturn intends to grow primarily inorganically and to buy existing projects.

Valuation of EUR 23 million as an opportunity

If an acquisition of significant size succeeds, the experienced team will turn a much more giant wheel overnight. The Company is currently valued at around EUR 23 million, is pursuing a clear growth strategy and understands its business. While stocks like BP or Gazprom are conservative, Saturn Oil & Gas offers considerable growth. Simultaneously, the risk is low: the team knows the local oil market, pursues a clear strategy around expansion and sustainability, and has long been profitable again at current oil prices.


Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

25. October 2021 | 12:36 CET | by Armin Schulz

BP, Saturn Oil & Gas, Royal Dutch Shell - Oil stocks take off

  • Oil

Anyone who has to fill up their car at the moment will not be thrilled. Prices at gas stations rose in some cases to over EUR 2. The reason is the further rising oil price. An end to this trend is currently not in sight. Morgan Stanley analyst Martijn Rats raised his forecasts for the first quarter of 2022 to USD 95 and sees the oil price at USD 70 per barrel in the long term. Falling supply due to scaled-back investments is causing prices to rise. Due to climate protection and the targets set, investments in the development of new oil wells have been significantly reduced. In 2014 it was still USD 740 billion; 6 years later, it is only USD 350 billion. Oil producers are currently benefiting the most from this development, so we take a closer look at three companies.

Read

21. October 2021 | 10:11 CET | by Carsten Mainitz

Gazprom, Saturn Oil + Gas, TotalEnergies - Rising prices continue to create a party atmosphere

  • Oil

Europe is currently experiencing an energy crisis. Drivers are noticing it clearly at the gas pumps and users of gas heating systems in their bills. The reasons are manifold: the recovery of the economy after Corona, the curbing of coal-fired power generation for climate protection reasons, the growing hunger for energy of emerging economies and, last but not least, weather effects. In Germany, there is an additional reason: the phase-out of nuclear energy is currently causing a strong expansion of gas-fired power generation to secure the baseload. The beneficiaries of this development are the oil and gas producers - and thus their investors.

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06. October 2021 | 12:56 CET | by Stefan Feulner

BYD, Saturn Oil + Gas, Royal Dutch Shell - Explosion on the oil market

  • Oil

The Organization of Petroleum Exporting Countries OPEC and its alliance partners led by Russia (OPEC+) have decided to increase production only gradually, despite tight supply. Demand is recovering strongly as the Delta variant of the coronavirus subsides. The result is skyrocketing oil prices, which are the highest they have been in seven years. In contrast, oil producer shares are still far from their highs.

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