Two CEOs Share Their Energy Picks: Chevron and Exxon Mobil
During a recent appearance on CNBC’s “Halftime Report,” Josh Brown, the CEO of Ritholtz Wealth Management, shared his reasons for buying Chevron (CVX) at current levels. Meanwhile, Jim Lebenthal, the Chairman and CEO of Lebenthal & Co., expressed his confidence in Exxon Mobil (XOM) as his top energy pick.
Josh Brown’s Case for Chevron
Brown began by acknowledging the challenges facing the energy sector, including the ongoing shift towards renewable energy and the demand destruction caused by the pandemic. However, he argued that Chevron’s strong balance sheet, large dividend yield, and potential for share buybacks make it an attractive investment.
“Chevron has a very strong balance sheet,” Brown said. “They have a very low debt-to-equity ratio, they have a very healthy dividend yield, and they have a significant amount of cash on their balance sheet.”
He also pointed out that Chevron is an active player in the renewable energy space, having recently invested in a wind farm off the coast of Scotland. Brown believes that this diversification, along with the company’s strong financial position, will enable it to weather the current challenges and thrive in the long term.
Jim Lebenthal’s Case for Exxon Mobil
Lebenthal, on the other hand, sees Exxon Mobil as a value play. He believes that the stock is undervalued relative to its historical levels and that the company’s turnaround efforts are gaining traction.
“Exxon Mobil is the largest publicly traded oil and gas company in the world,” Lebenthal said. “They have a tremendous amount of assets, and they’re in the process of turning themselves around.”
He pointed to the company’s recent cost-cutting measures and strategic initiatives, such as its plans to increase its investment in renewable energy. Lebenthal also noted that Exxon Mobil’s dividend yield is currently higher than that of many other large companies in the S&P 500.
Impact on Individuals
For individual investors, the comments from Brown and Lebenthal offer insights into the thinking of two experienced market participants. Both executives have a positive outlook on the energy sector and believe that their respective picks offer attractive investment opportunities.
If you are considering investing in the energy sector, it’s important to do your own research and consider your risk tolerance. Both Chevron and Exxon Mobil have strong financial positions and are making efforts to adapt to the changing energy landscape, but they also face significant challenges. It’s essential to weigh the potential rewards against the risks before making a decision.
Impact on the World
At a broader level, the comments from Brown and Lebenthal reflect the ongoing debate about the role of fossil fuels in the global energy mix. While renewable energy sources continue to gain popularity, oil and gas will remain a significant part of the energy landscape for the foreseeable future.
The investments made by Chevron and Exxon Mobil, along with other major energy companies, will have a significant impact on the world’s energy supply and the global economy. It’s important for policymakers, investors, and consumers to understand the implications of these investments and to work towards a sustainable energy future.
Conclusion
The comments from Josh Brown and Jim Lebenthal provide valuable insights into the thinking of two experienced executives in the energy sector. Both CEOs see value in Chevron and Exxon Mobil, but it’s important for individual investors to do their own research and consider their risk tolerance before making investment decisions. The ongoing debate about the role of fossil fuels in the global energy mix will continue to shape the investments made by companies like Chevron and Exxon Mobil, and it’s essential for policymakers, investors, and consumers to work towards a sustainable energy future.
- Josh Brown sees Chevron as an attractive investment due to its strong balance sheet, dividend yield, and renewable energy initiatives.
- Jim Lebenthal believes Exxon Mobil is a value play, with a significant amount of assets and a turnaround in progress.
- Individual investors should consider their risk tolerance and do their own research before investing in the energy sector.
- The investments made by energy companies will have a significant impact on the world’s energy supply and the global economy.
