Pavel Molchanov is a Senior Vice President and Equity Research Analyst at Raymond James & Associates, Inc. He joined the firm in 2003 and began work as part of the energy research team, becoming an analyst in 2006. He initiated coverage on the alternative energy/clean technology sector in 2006, followed by the integrated/multinational oil and gas sector in 2009. Mr. Molchanov has been recognized in the StarMine Top Analyst survey, the Forbes Blue Chip Analyst survey and The Wall Street Journal Best on the Street survey.
In this exclusive 1,982 word interview with the Wall Street Transcript, Pavel Molchanov details his top picks for 2019 and his reasoning behind them:
“Our forecast is that oil prices 12 months from now will be approximately 50% higher than where they started 2019, and we anticipate that, on a full-year basis, 2020 will mark the cyclical peak for oil prices.”
Mr. Molchanov is not shy about sharing his negative calls:
“Exxon, by its nature, has an asset base that is not well-positioned in the context of rising oil prices. When oil prices go up, the rising tide lifts all boats, but Exxon would tend to be one of the least exciting ways to play an oil recovery. It’s the world’s largest refiner. It’s the world’s third-largest chemical company. It’s also a major player in North American and European natural gas where, as I mentioned, economics are quite different from oil.
And so if our bullish oil forecast proves out, then Exxon’s earnings would have less upside relative to just about anybody else in the peer group…”
And he has several top picks to share with investors, including:
“On the large-cap side, Occidental Petroleum (NYSE:OXY). On the spectrum of E&P companies, Occidental is on the defensive side, but for investors who are looking for some income, this is one to look at. The dividend yield is 5%, which is the highest of any U.S. E&P company, but this is also a growth company largely because of its Permian Basin assets.”
To get all of the Pavel Molchanov’s Oil & Gas Sector insights, read the complete 1,982 word interview in the Wall Street Transcript.
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January 30, 2023