Reporting Season Wrap: The Energy Sector
As reporting season wraps up, oil prices look positive with a test of $64 / +12% the next technical target. Given that backdrop, energy stocks remain a buy the dip scenario, and reasonable pullbacks are common. Key points:
- A massive dividend from Woodside (ASX:WPL) which amounted to a payout ratio of 103% reduced their franking credit balance however don’t expect the same in future
- Santos (ASX:STO) has now moved from a focus of cost cutting / balance sheet repair in the last 3 years, to growth. Traditionally, they’ve been poor acquirers
- Oil Search (ASX:OSH) is moving from a one-trick pony in PNG, to growth in Alaska. A long term transformation but the short term is more muted
