KSA

In the News: Sears Adds to Retail Bankruptcies, Leading Defense Company Formed, and the Political Nature of Crude Oil Prices

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Sears officially files for bankruptcy, a top-ten global defense company is formed, and political tensions with Saudi Arabia have the potential to send crude oil prices higher. By Kris Rosemann At one time it was the largest retailer in the US, but Sears Holdings (SHLD) has fallen a long way to its filing for Chapter 11 bankruptcy protection early October 15. Real estate investment trust Seritage Growth Properties (SRG) is facing selling pressure as it generates roughly 30% of signed lease income from Sears properties, and a report released earlier this month from Reis noted that US mall vacancies hit 9.1% in the third quarter of 2018, a seven year high. Sears’ Chapter 11 filing marks the twelfth retail bankruptcy … Read more

Historic Oil Deal Reached

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Image Source: Chevron Corporation (CVX) – March 2020 Security Analyst Meeting Presentation By Callum Turcan Over the Easter holiday weekend, members from the Organization of Petroleum Exporting Countries (‘OPEC’), non-OPEC members that are part of the OPEC+ group (countries that in the recent past have joined forces with OPEC to curtail global oil supplies in a formal manner), and non-OPEC members outside of the OPEC+ group such as Brazil (EWZ), Canada (EWC), and the United States (SPY) came to an agreement to cut their collective oil output by north of 10 million barrels per day. Global oil and other raw energy resource prices (USO, BNO) have been simply demolished year-to-date due to a combination of demand destruction from the ongoing … Read more

Our Thoughts on Chevron Buying Noble Energy

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Image Shown: An overview of Chevron Corporation’s all-stock acquisition of Noble Energy Inc that was announced in July 2020. Image Source: Chevron Corporation – July 2020 Noble Energy Acquisition Presentation By Callum Turcan On July 20, Chevron Corporation (CVX) announced it was acquiring Noble Energy Inc (NBL) through a $5.0 billion all-stock transaction, or $13.0 billion when factoring in net debt and the book value of non-controlling interests. Shareholders of Noble Energy will receive approximately 0.12 share of Chevron for each share of Noble Energy. At the time the deal was announced, shareholders of NBL were receiving a ~12% premium based on the ten-day average closing stock prices. Chevron intends to issue ~58 million shares to cover the deal, keeping … Read more