ORG's a leveraged oil recovery play IMO. ORG (and STO for that matter) are currently undergoing the same sort of forced efficiency that the US shalers are undergoing in response to low oil prices, which involves slashing staff, rationalising and playing off desperate contractors against each other to get the lowest possible prices. That's going to make ORG far more competitive when the US LNG players come on the market in future, and probably allow them to be reasonably competitive given the shipping advantage they have.
Big difference is nobody is questioning ORG's LNG project, while STO's is clearly in serious trouble through lack of reserves and underperformance of key fields.
On top of that ORG has the energy markets business underwriting it so will not have the same problems reducing debt that STO is currently having by making an underlying loss.
There are a couple of downsides - ORG spent like a drunken sailor in the boom years and wasted roughly $2B of shareholders' money, which IMO shows a pretty serious lack of oversight by the board. And ORG's debt remains much higher than STO's, and ORG doesn't have any assets that can cover that debt in an emergency, like STO does for its debt in the form of PNG-LNG.
All in all ORG looks pretty safe to me. Not as safe as WPL, but there's more value in ORG current as a recovery play as WPL never took the same beating during the oil crash.
ORG Price at posting:
$4.93 Sentiment: Buy Disclosure: Held
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