Stop Ignoring This Balance Sheet Risk

In the video below, Motley Fool contributor Sara Murphy discusses a huge liability that is sitting on many energy companies' balance sheets. Most investors are missing it completely. Are you?

It turns out that investors overlook a lot of things. One home-run opportunity has been slipping under Wall Street's radar for months, but it won't stay hidden much longer. Forward-thinking energy players like GE and Ford have already plowed sizable amounts of research capital into this little-known stock... because they know it holds the key to the explosive profit power of the coming "no choice fuel revolution." The more expensive carbon gets, the better this stock looks. Luckily, there's still time for you to get on board if you act quickly. All the details are inside an exclusive report from The Motley Fool. Click here for the full story!

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 02, 2013, at 11:08 AM, grahamsway wrote:

    An excellent presentation.

    I'm a big believer that global warming is a big, big problem, likely juiced by man made factors, and that we'd all be better off if we didn't have to burn fossil fuels.

    That being said there are couple of factors that seem to make unburnable reserves a relatively insignificant factor at least in an even long term investors timeframe.

    The first is that the critical valuation for e&p's isn't generally reserve based but op cash flow driven. Since the reserves are basically sunk cost, even if they had to write down some reserves it might sound scary but would do little to effect CF. In fact, the restriction on certain grade oils would likely raise general oil prices overall which would add value to current production of the good grades.

    The second is that the entire premise seems to depend on the fact that all will agree to meaningfully reduce carbon based consumption as we know it. While we are making tiny steps in that direction, the timeline on something like significantly reducing gasoline use in a growing economic environment would seem pretty long. I might take the bet that Saudi oil reserves deplete way before we get any major shift away from oil based consumption.

    I think we will eventually get to a lower carbon emission world but unfortunately it will probably be because we have to through limited supply/ inordinately high prices or obvious environmental disaster.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2520329, ~/Articles/ArticleHandler.aspx, 8/29/2016 7:50:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,502.99 107.59 0.58%
S&P 500 2,180.38 11.34 0.52%
NASD 5,232.33 13.41 0.26%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/29/2016 4:01 PM
BP $34.24 Up +0.08 +0.23%
BP CAPS Rating: ****
STO $16.10 Up +0.14 +0.88%
Statoil CAPS Rating: ****
TRP $46.23 Down -0.02 -0.04%
TransCanada CAPS Rating: ****
RDS-A $49.76 Up +0.06 +0.12%
Royal Dutch Shell… CAPS Rating: ****
XOM $87.84 Up +0.57 +0.65%
ExxonMobil CAPS Rating: ****