00:00 Speaker A
Occidental Petroleum and Chevron hit with a downgrade from Scotia Bank, these stocks lowered to sector perform from sector outperform. Scotiabank also lowering its price target on each stock. So, um, the note here. So on Occidental, they go to sector perform. So the equivalent of a hold, Julie. The uh target is 40. They talk about a leverage position is being more problematic versus rivals due to the untimely acquisition of crown rock. They talk about how it’s going to be tough for the company to outperform until the macro improves.
00:45 Speaker B
Yeah, and they talk about how that this is, in their words, one of the most oil leveraged companies within our universe. I don’t know if you’ve noticed, but we’ve seen oil prices go down. So that would be a negative potentially in this environment. When it comes to Chevron, you know, one of the key reasons why investors hold these oil companies is because of the cash return to shareholders. Mm-hmm. Yes. Exactly. And the analyst at Scotia says we think that Chevron has a higher likelihood of reducing their current buyback run rate from the recent annual pace in the coming quarters. Exxon has a higher probability of retaining that rate.
01:35 Speaker A
Send me a check.
02:03 Speaker A
And what do they like, Julie? They go to hold on a couple of them. What do they like? They like EOG resources. They go to sector outperform, so equivalent of buy. Fortress balance sheet.
02:26 Speaker B
You always like to hear that.
02:29 Speaker A
You do. You really do.
