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    Lucas Herrmann • BNP Paribas

    Lucas Herrmann's questions to BP PLC (BP) leadership

    Lucas Herrmann's questions to BP PLC (BP) leadership • Q2 2025

    Question

    Lucas Herrmann of BNP Paribas asked about the fiscal implications of recent US legislation on corporate tax and the outlook for refinery availability, given the recent period of heavy turnarounds.

    Answer

    EVP Gordon Birrell stated that he expects a lower level of turnaround activity in 2026-2027 compared to the 2024-2025 period and aims to maintain the recently achieved high availability. CEO Murray Auchincloss described the US tax legislation as 'very positive,' as it sustained the 21% corporate tax rate and included immediate expensing, which helps business planning and investment.

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    Lucas Herrmann's questions to BP PLC (BP) leadership • Q2 2025

    Question

    Lucas Herrmann of BNP Paribas inquired about the fiscal implications for BP from recent US tax legislation and asked for an outlook on refining availability, considering the recent heavy turnaround schedule.

    Answer

    EVP - Production & Operations Gordon Birrell projected that turnaround days would be lower in 2026-27 compared to 2024-25, with a goal of maintaining the current high availability levels. CEO Murray Auchincloss described the US tax bill as 'very favorable,' as it maintained the 21% corporate tax rate and immediate expensing, which benefits BP's significant US operations.

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    Lucas Herrmann's questions to BP PLC (BP) leadership • Q1 2025

    Question

    Lucas Herrmann of BNP Paribas asked for confirmation on the expected LNG volume from the Venture Global offtake this year. He also posed a strategic question, suggesting that to build investor confidence, BP should perhaps focus less on speculative value trading to reduce quarterly earnings volatility and instead prioritize a more stable, flow-based margin.

    Answer

    Executive Murray Auchincloss confirmed that the Venture offtake started flowing in mid-April from BP's 2 MTPA capacity. In response to the trading question, he argued that telling the trading organization to stabilize income would remove its commercial edge. He stressed that trading performance should be viewed on an annual or multi-year cycle, where BP has a strong track record of delivering its target 4% return, rather than on a volatile quarter-by-quarter basis.

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    Lucas Herrmann's questions to Chevron Corp (CVX) leadership

    Lucas Herrmann's questions to Chevron Corp (CVX) leadership • Q2 2025

    Question

    Lucas Herrmann of BNP Paribas asked about Chevron's LNG strategy, specifically how it plans to manage its increased offtake capacity of 7 million tonnes per annum, questioning the balance between securing long-term contracts versus retaining flexibility for short-term market plays.

    Answer

    Chairman & CEO Michael Wirth noted that some offtake agreements have already been executed. Vice Chairman Mark Nelson added that the strategy is to build a globally connected LNG portfolio. The increased U.S. Gulf Coast offtake, combined with equity gas from Australia, allows Chevron to serve the global system and direct product to markets with the best margins, providing exposure to multiple margin sets.

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    Lucas Herrmann's questions to Chevron Corp (CVX) leadership • Q1 2025

    Question

    Lucas Herrmann asked for clarification on the outlook for cash flow from equity affiliates, noting a perceived change in guidance for the year.

    Answer

    CFO Eimear Bonner explained that the updated earnings guidance reflects higher DD&A from the early TCO startup and a revised margin outlook for CPChem. CEO Mike Wirth clarified that the full-year guidance for affiliate *dividends* remains unchanged; the difference is between earnings and dividends.

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    Lucas Herrmann's questions to Chevron Corp (CVX) leadership • Q4 2024

    Question

    Lucas Herrmann asked for clarification on the Wheatstone asset swap, questioning if 'monetize' refers to the resource or the facility, and asked if returns for the new power business are evaluated on a volatility-adjusted basis.

    Answer

    CEO Mike Wirth clarified that 'monetize' means developing the gas resource through the LNG plants over time, not selling a stake in the facility. For the power business, he explained returns would be viewed similarly to other volatile parts of their business, using tools like Power Purchase Agreements (PPAs) to manage risk.

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    Lucas Herrmann's questions to Chevron Corp (CVX) leadership • Q3 2024

    Question

    Lucas Herrmann from BNP Paribas inquired about the forward-looking capital expenditure trajectory, noting that with major projects completing and a focus on free cash flow, there seems to be an opportunity for CapEx to decline materially.

    Answer

    CEO Mike Wirth acknowledged that affiliate CapEx will decrease next year as the TCO project concludes. He highlighted that overall CapEx is already less than half of what it was a decade ago and has become much more ratable. While premature to give a specific 2025 number, he reiterated the commitment to the existing $14-16 billion guidance range and capital discipline. CFO Eimear Bonner confirmed this focus.

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    Lucas Herrmann's questions to Shell PLC (SHEL) leadership

    Lucas Herrmann's questions to Shell PLC (SHEL) leadership • Q2 2025

    Question

    Lucas Herrmann asked for an update on the full-year outlook for divestments, including the status of the Colonial pipeline sale. He also inquired about the deepwater Nigerian project OPL 245 (Zaba Zaba) and whether it might be moving forward.

    Answer

    CEO Wael Sawan noted that OPL 245 is operated by ENI and Shell would defer to them, but confirmed Shell is actively looking to expand in deepwater Nigeria with projects like Bonga Southwest. CFO Sinead Gorman stated that divestments are more about strategic portfolio alignment than a funding necessity this year. She expects the Colonial sale to close in Q3 or Q4.

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    Lucas Herrmann's questions to Shell PLC (SHEL) leadership • Q2 2025

    Question

    Lucas Herrmann asked for an update on expected full-year divestment proceeds and the status of the OPL 245 (Zaba Zaba) deepwater project in Nigeria.

    Answer

    CFO Sinead Gorman noted that divestments this year are focused on strategic portfolio alignment rather than a need for cash, with the Colonial pipeline deal expected to close in H2. CEO Wael Sawan stated the OPL 245 project is operated by ENI, but Shell continues to evaluate other deepwater opportunities in Nigeria, such as Bonga Southwest.

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    Lucas Herrmann's questions to Shell PLC (SHEL) leadership • Q1 2025

    Question

    Lucas Herrmann asked about the status of strategic reviews for chemicals assets, the reason for low utilization guidance, and why the detailed net income breakdown for Marketing sub-segments was removed from disclosures.

    Answer

    CEO Wael Sawan confirmed inbound interest for chemicals assets since CMD, with a process underway to find the right partnership structure, not a fire sale. He noted utilization guidance reflects a choice to switch off cash-negative units. Executive Sinead Gorman explained the marketing disclosure was intentionally simplified to reduce complexity and cost, as allocating items like tax to sub-segments was impractical, while still providing quarterly EBITDA and annual capital employed.

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    Lucas Herrmann's questions to Shell PLC (SHEL) leadership • Q4 2024

    Question

    Lucas Herrmann of BNP Paribas asked for a more specific timeline on the completion of the Pavilion acquisition and sought management's perspective on why Shell's shares continue to trade at a low multiple despite strong performance.

    Answer

    Executive Sinead Gorman anticipates regulatory approvals for the Pavilion deal by the end of Q1, with a notable financial impact expected in 2026. Executive Wael Sawan expressed confidence that consistent delivery and building a strong track record will eventually lead to a valuation re-rating, adding that the current share price presents a compelling opportunity for buybacks.

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    Lucas Herrmann's questions to Shell PLC (SHEL) leadership • Q2 2024

    Question

    Lucas Herrmann of BNP Paribas questioned the sizable loss in the Renewables and Energy Solutions (RES) business, seeking guidance on future profitability and clarity on its capital employed. He also asked about Shell's strategy for unlocking value from its Marketing assets, referencing a peer's recent divestment.

    Answer

    CFO Sinead Gorman explained the RES segment's quarterly loss was due to low market volatility, which limited trading and optimization opportunities, and that a near-zero result is expected on average without volatility. CEO Wael Sawan stated that the current focus for the Marketing business is on improving performance to its full potential by focusing on value, premium products, and cost reduction, before considering structural options to unlock value at a future date.

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    Lucas Herrmann's questions to TotalEnergies SE (TTE) leadership

    Lucas Herrmann's questions to TotalEnergies SE (TTE) leadership • Q2 2025

    Question

    Lucas Herrmann of BNP Paribas followed up on the Mozambique LNG project, asking for clarity on the 'misalignment' with the government, and inquired about the performance and strategic fit of the Hutchinson manufacturing business within TotalEnergies' portfolio.

    Answer

    Patrick Pouyanné, Chairman & CEO, clarified his Mozambique comment was positive, meaning that achieving strong alignment is a prerequisite to restarting a major project, not that there is a negative misalignment. On Hutchinson, he stated the business is performing very well and fits comfortably in the portfolio, adding that he spends little time on it and is focused on more strategic M&A in core areas like oil, gas, and integrated power.

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    Lucas Herrmann's questions to TotalEnergies SE (TTE) leadership • Q1 2025

    Question

    Lucas Herrmann asked about the impact of currency fluctuations, specifically a strengthening euro, on the company's dollar-reported debt. He also inquired about the expected full-year net contribution from associate companies.

    Answer

    CEO Patrick Pouyanné noted that a weak dollar is beneficial as it lowers the dollar cost of the euro-denominated dividend. CFO Jean-Pierre Sbraire clarified that the company's debt is effectively all in dollars, as any euro-denominated bonds are swapped to dollars, resulting in very limited FX exposure on debt. Regarding associates, Pouyanné explained that the lack of Q1 dividends from some JVs like Nigeria LNG is a timing issue, as they operate on different payment schedules, and he expects the cash to come through later in the year.

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    Lucas Herrmann's questions to TotalEnergies SE (TTE) leadership • Q2 2024

    Question

    Lucas Herrmann of BNP Paribas asked about the future redemption schedule for hybrid bonds and sought an outlook on the development of Chinese oil demand.

    Answer

    CFO Jean-Pierre Sbraire explained that the company used its flexibility to not renew €1.5 billion in hybrids and will discuss future redemptions with rating agencies. CEO Patrick Pouyanné commented on China, stating that while EV sales are impressive, oil demand continues to be driven by China and India. He believes a global demand growth assumption of around 1% per year remains reasonable and cautioned against overstating the slowdown in the Chinese economy.

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    Lucas Herrmann's questions to TotalEnergies SE (TTE) leadership • Q1 2024

    Question

    Lucas Herrmann from BNP Paribas inquired about the progress and cost developments in the offshore wind business, asking about the potential timing for final investment decisions (FIDs) in Europe and North Asia.

    Answer

    CEO Patrick Pouyanné emphasized a strict, CapEx-driven approach, stating the company will not proceed with overly costly projects and is not in a rush to meet 2030 targets at the expense of profitability. He noted that offshore wind must be competitive in a merchant power market and that the company will be selective with its many options. He identified Germany and the U.K. as potentially attractive markets.

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