Deutsche Bank this morning initiated the integrated oil space with an attractive outlook
DB: After 3+ years of restructuring, the dust has largely settled and the "formerly Integrateds" look more attractive than they have in years. A shift onshore is driving solid growth, high margins, reduced volatility, long-term visibility, and even free cash flow/cash return, while still trading at a discount to the diversified E&Ps. With competitive portfolios, we believe that as the companies execute on current plans multiples should expand in line with large-cap E&Ps (25% discount to EV/DACF currently). Initiating coverage of the US "Integrated" Oils with an attractive outlook. Top pick Marathon Oil (MRO). Buy ratings on HES, COP, CVX; Hold: MUR, OXY, XOM.