Energy Companies Are In Denial: Oppenheimer

Neither energy companies nor analysts are really confronting the possibility of a permanent drop in oil prices, say Oppenheimer analysts Fadel Gheit and Luis Amadeo, setting CAPEX targets and earnings estimates higher than current prices (both the spot price and futures for WTI is below $60). They say that investors should get ready for deeper cuts as well as downward earnings revisions. “Most energy companies are still in denial as they are unprepared for a prolonged period of low oil prices, which could be a big mistake as wishful thinking is not a strategy, they write in a December 29…