More Pipelines Expected to Transport U.S. Oil in 2013: Paul Sankey, Analyst at Deutsche Bank Securities Inc., Interviews with The Wall Street Transcript

67 WALL STREET, New York - June 28, 2013 - The Wall Street Transcript has just published its Oil & Gas Review 2013 Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Emerging Shale Plays - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Outlook for Natural Gas Liquids - Low Treasury Yields and MLP Dividends

Companies include: Occidental Petroleum Corporati (OXY), Chevron Corp. (CVX), Anadarko Petroleum Corp. (APC), Marathon Oil Corporation (MRO) and many more.

In the following excerpt from the Oil & Gas Review 2013 Report, an expert analyst discusses the outlook for the sector for investors:

TWST: You downgraded Occidental to a "hold" earlier this month. Tell us about the factors that contributed to the downgrade.

Mr. Sankey: We had thesis drift on the stock, which is to say we had good reasons to buy OXY (OXY) based on the company's sustained track record of above-average growth, above-average free cash flow generation, above-average dividend growth, and we thought what would be the next leg to justify what we thought was a premium valuation, which was going to be development of a major new growth driver in California. And over time, California has struggled to be - OXY really had a unique position in terms of scale in California. OXY basically struggled to deliver what we thought was the long-term story there.

There were various early problems to deal with. It is more of an expected decline rate and some permitting issues, some issues with gas processing that allowed us to essentially be patient in terms of California delivery. But ultimately that California story, which is really going to be some growth driver for the company, hasn't turned out to be what we thought it would be, and therefore, rather than get into severe thesis drift where essentially we have a "buy" rating on a stock and then we make up new reasons to buy it because the old ones were wrong, we are not prepared to do that.

So what we do is that we clear the deck, we admit that the stock was a poor performer relative to energy in the market, and energy was a poor performer relative to the market. What we do is, we clear the deck and take some time out, and then will look again at OXY in the course of the next six months as long as its valuation becomes a lot more attractive, and we believe the industrial story is turning, which is a real possibility because they are working hard to improve their efficiency with similar levels of growth but with a lot less spending, then we can come back to the stock. But for now, I'm afraid to say we are in the penalty box in that one, and so we cleared the recommendation out.

As a sell-side Analyst, when you have a "buy" recommendation that...

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