Six of the biggest oil companies — Chevron, Exxon, Shell,ConocoPhillips, BP and Total — collectively shed more than $200 billion in market capitalization last year, according to CNBC analysis of FactSet data.
Chevron on Friday reported a surprise earnings loss for the fourth quarter.
Exxon and BP report before the bell on Tuesday, followed by ConocoPhillips and Shell on Thursday morning. All are expected to see profits and revenues drop significantly from a year ago.
For the time being, investors should not be overly optimistic about these companies, but in the longer term, opportunity can be found in the integrated oil segment, Terreson said.
In the interim, the majors will continue to slash costs and may yet dial back oil production by as much as 5 to 10 percent for the year, but dividend payments are safe, he added. “The dividend is very important to these companies because it’s the majority of their value proposition.”
That view is not universally held. Oppenheimer senior analyst Fadel Gheit told CNBC’s “Squawk on the Street” on Friday he believesdividends are now under threat following Chevron’s earnings miss