Sunday Thematic & Weekly Recap

M&A Drives Value, Offers Less Risk, But Will Cause Shortages
February 20, 2022
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polyurethane, Polycarbonate, PET, Clean Energy Minerals, Ethylene, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Coal, Petcoke, Water, E-Waste, Aluminum, Steel, Glass, Paper, Renewable Diesel, SAF, Oxygen, Benzene, Carbon Black, Propylene
Companies Mentioned:
Navigator Gas, Nova Chemicals, Baystar, ExxonMobil, Sabic, Dow, LyondellBasell, Westlake, OxyChem, Celanese, 3M,, Michelin, DSM, BASF, Glencore, Clariant, Apollo, PTTGC, AkzoNobel, Shell, Aramco, PG&E, Enbridge, Continental, DIC, DCM Shriram, Kaneka, Kiri Industries, Bodal Chemicals, Chemanol, Givaudan, Grasim Industries, Showa Denko, Nippon Paint, Technip Energies, Petronas Chemicals Group, Kinder Morgan, Air Liquide, USA BioEnergy, Umicore, Rio Tinto, Sealed Air, CF Industries, Alpek, Braskem, Huntsman, Covestro, ADNOC, Borealis, Borouge, Liberty Oilfield, Equinor, Crescent Energy, Cabot, Chemours, Trinseo, Hengli, Hikal, IRPC, Lotte Chemical, MEGlobal, OCI, Sipchem, Wacker, Danimer Scientific, Origin Materials, Nexus Circular, Neste, Mitsui, Marathon Petroleum, ITOCHU, Linde, Chevron, Bloom Energy, Flux Power, Air Products, Aviva, Ecolab, DuPont, Suez, Pentair PLC, Evoqua, Xylem, Badger Meter, Energy Recovery, Itron, Primo Water, Consolidated Water, LiqTech International, Olin, Nutrien, The Andersons, Repsol, Codelco, EuroChem, M. Holland, Oriental Energy, Shin-Etsu, Solvay, Tronox, Aurubis, Fortum, Denbury, Talos Energy, EnLink Midstream, Santos, Pertamina, Louis Dreyfus, McDermott, Green Plains, Versalis, Vopak, AdvanSix, US Amines, Orion Engineered Carbons, Deere, Nacero, Antero, Pioneer, Marathon Oil, Keyera, Novatek, TotalEnergies, Barnes, Albemarle, Asahi Kasei, Mitsubishi Chemical, Sika, Aemetis, Airbus, Hy2gen, Novoloop, Reliance, Renewable Energy Group, Polystar, Eneos, Lowe’s, Home Depot, Reckitt, Renault

C-MACC Sunday Thematic & Weekly Recap 106

M&A Drives Value, Offers Less Risk, But Will Cause Shortages

  • Strategic M&A, as a low-risk alternative to major organic growth Capex options, is picking up, and activity is unlikely to dissipate in 2022 despite high valuations.
  • We discuss the recent DuPont/Celanese transaction, as the deal makes strategic sense for both, but Celanese will need flawless integration to cover the high price.
  • We look at how undervalued some of the chemical names look, especially if the broad demand momentum we have seen YTD continues and margins stay high
  • We discuss mixed fortunes in the energy transition sector, as 4Q results show that inflationary pressure negatively impacts some more than others.
  • Otherwise, we examine several energy issues as we sit through another uneasy weekend regarding central Europe and note how much E&P needs to rise in the US.

Last week we discussed 28 Chemicals and related products and 140 Companies.

See PDF below for all charts, tables and diagrams

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