Energy Business Wrap Up: Talisman and Others See Costs Ballooning, Exxon’s New Buy Rating
It is said that costs are skyrocketing for a number of Norwegian field development projects, as the tight supply market ravages budgets. Talisman Energy’s (NYSE:TLM) stalled Yme project faces a cost overrun of 188 percent, while BP (NYSE:BP) deals with major cost challenges to its Skarv and Greater Valhall projects. Meanwhile, Eni’s (NYSE:E) Goliat field shows a 20 percent cost rise.
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Dahlman Rose points to Exxon Mobil Corporation’s (NYSE:XOM) disciplined investment strategy during up and down cycles, superior track record among majors, its balanced world portfolio, along with its consistent distribution of cash to shareholders, as earning it a Buy and a target price of $100. At the same time, Chevron Corporation (NYSE:CVX) only deserves a Hold, says the analyst, which cited two major LNG projects as crucial areas of near-term risk.
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