Douglas Terreson |
First TeamDouglas Terreson Morgan Stanley Second Team Doug Leggate, Citi Third Team Neil McMahon, Sanford C. Bernstein Runners-Up Paul Cheng, Lehman; Mark Flannery, Credit Suisse; Arjun Narayana Murti, Goldman Sachs; Paul Sankey, Deutsche |
After falling to second place in 2006, Douglas Terreson, 45, of Morgan Stanley reclaims the top spot this year. The Houston-based analyst “does not allow short-term noise or volatility to sway his theses,” observes one portfolio manager. Although investor expectations for Houston-based integrated energy giant ConocoPhillips’s were low, because of its recent acquisition of Burlington Resources, Terreson saw its management growing more focused on shareholder value and urged investors to buy in March, at $65.25. A major share repurchase helped drive the stock price to $85.27 by mid-September, a gain of 30.7 percent. During the same period the sector gained 23.5 percent. Praised by clients for “understanding the structural issues affecting the refining sector, while focusing on the companies rather than worrying too much about the oil price,” Doug Leggate rises from runner-up to second. The Citi analyst steered investors toward less-diversified companies for which operational changes are more quickly reflected in their stock prices, including San Antonio, Texas–based refiner Tesoro Corp., which Leggate recommended in January. In April, with the stock up 67.6 percent, he downgraded to hold on valuation. By mid-September shares had fallen 11.1 percent. Down two notches to third, London-based Neil McMahon of Sanford C. Bernstein earns praise for looking beyond price-focused research toward broader themes, such as global warming and the positive impact of melting polar ice on Arctic exploration. Buy-siders call his work “thought provoking” and “insightful.” |
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Energy: Integrated Oil 2007