What’s MMs top pick for oil and gas?

Hi Josh,

In the large cap space, we prefer Woodside (WDS) over Santos (STO) even though we recently reduced our exposure from 5% to 3%. The acquisition of BHP’s Petroleum business was a game changer for WDS, while STO has a large amount of Capex requirement in the coming years meaning they won’t be spinning off the dividends that Woodside will in the nearer term. So for now, WDS is our preference, but down the track, STO could be a great option – just not yet.

We also own Exxon Mobil (XOM US) in the international portfolio which is another company just spinning off lots and lots of cash and a great way of playing this transition thematic.

Don’t forget Whitehaven Coal (WHC), a position we have just re-entered having sold too early,  underestimating the theme you have spoken about.

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Woodside Energy Group (WDS)

LAST UPDATED 18/11/2022 15:46

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Woodside Energy Group (WDS)

LAST UPDATED 18/11/2022 15:46