See attached note page 68
- “Key longs” are BG, Afren, Africa Oil, Technip; “key avoids” are Eni, OMV, Neste, CGG
- Says RoE compression for “big oil” continues; question is if incentives in place for management to make changes; Citi worries cos. “will remain in denial”
- Sees better value in E&P cos., with NAVs discounting $75/bbl Brent vs $90/bbl for European integrateds
- Oil service cos. positioned around growth; market seems to “deeply distrust” sector on “terrible” execution in 2013
- Project execution issues like Brazil timetables, politics like Libya situation are 2 risks that market tends toward