Post argues Venezuela reopening is only partially priced and favors oil-services/refiner names HAL, SLB, VLO, and COP over oil-price exposure, while seeing a possible CVX spike that fades.
HAL — LONG The author argues Halliburton will benefit from repairing Venezuela's existing pipelines and pumps and supporting Chevron's drilling, while avoiding oil-price volatility because it does not sell oil. He expects HAL could be profitable to hold for the next 6-12 months.
Halliburton HAL will be sent to repair the existing pipelines and pump. HAL will fix everything and they already have existing infrastructure in Venezuela. They will also support Chevrons drilling. I believe HAL could be profitable to hold for the next 6 - 12 months
SLB — LONG The author sees Schlumberger as the technology leader that can map and plan extraction for Venezuela's remaining oil fields, making it an excellent play that avoids oil-price exposure. He believes it could be a good hold for 6-18 months.
SLB is the “brains” of the operation, SLB has the technology to detect all of Venezuelas remaining oil field, especially the oil in the hard to reach places and SLB plans the extraction and maps everything. No company has the technology SLB does.
VLO — LONG Valero specializes in refining Venezuela's heavy crude, and the author expects profits to spike significantly over the long term as Venezuelan crude becomes available.
One refinery in particular I am looking at it Valero VLO, they specialize in refining Venezuela heavy crude products, this could be a good long term play as profits will spike significantly long term.
COP — WATCH ConocoPhillips had Venezuelan assets seized under Maduro and is owed $10 billion, so the author believes it will definitely get restitution, making it a watch candidate.
Another one to watch could be ConocoPhillips COP as they were an oil company involved in Venezuela many years ago and their equipment and assets were seized under the Moduro regime and are owed $10 billion because of this by Venezuela so I believe they will definitely get restitution.
CVX — WATCH The author says Chevron is a potential winner because it already has Venezuelan infrastructure, but expects a possible opening spike to fade as the news wears off, given damaged infrastructure, sanctions, and a potentially flooded oil market.
I think Chevron CVX is potentially the winner here as they’re already on the ground in Venezuela and have infrastructure there, I can see a spike with CVX on opening on Monday but I think when the news fades it could go down