< The 2014 All-America Research TeamDouglas TerresonISI GroupFirst-place appearances: 4
Total appearances: 22
Team debut: 1995“I wouldn’t make a move without consulting Doug,” declares one client of ISI Group’s Douglas Terreson, who reclaims second place on this lineup after a year at No. 3. Adds another fund manager: “I like how he incorporates the macro commodity view into his assessment of the integrateds as investments.” The Fairhope, Alabama–based researcher is bullish on U.S. integrated oil companies, recommending that investors overweight the group, and projects “resilient” crude oil prices of near $110 a barrel through 2015. “While returns declined in recent years,” Terreson says, “management teams across the sector are implementing more disciplined capital investment programs, and as cash flow rises increased shareholder distributions are likely to unfold.” To that end, he assigns buy ratings to ConocoPhillips and Occidental Petroleum Corp. of Houston and Irving, Texas–based Exxon Mobil Corp. “Each company holds a healthy growth and return profile and a commitment to return surplus capital to shareholders in coming years. This is usually a winning combination in the equity market for integrated oils,” the analyst concludes.