Author Archive: Tom Sanzillo

Director of Finance Tom Sanzillo has 30 years of experience in public and private finance, including as a first deputy comptroller of New York State, where he held oversight over a $156 billion pension fund and $200 billion in municipal bond programs. 


IEEFA Exxon: A Company in Need of More Accountability at the Top

IEEFA Exxon: A Company in Need of More Accountability at the Top

As Directors Ponder CEO's Successor, Will They Seek a Much-Needed Change in Meeting Performance Standards?

ExxonMobil has been reducing its cash returns to investors over the past few years, a trend we highlighted in our report last week, “Red Flags on Exxon Mobil,” but has still paid out far more to investors than standard financial metrics would support.  Indeed, all indicators, including the company’s recent announcement that it will likely de-book […]

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IEEFA Update: The Global Energy Transformation Remains on Track

IEEFA Update: The Global Energy Transformation Remains on Track

U.S. Presidential Election Results Regardless, the Gathering Transition to Renewables Continues

Regardless of any potential or even likely shift in U.S. energy policies, the transition of global energy markets is firmly entrenched. A succession of financial and technology breakthroughs position renewable energy and efficiency as clearly price competitive in an increasing number of energy markets  Policy action, with the ratification of the Paris climate accord, reflects […]

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IEEFA Exxon: Why the Abrupt Revision on Reserves?

IEEFA Exxon: Why the Abrupt Revision on Reserves?

Oil Giant Owes Investors Answers, and Much More Transparency

The headline news out of ExxonMobil’s third-quarter earnings call last week bears repeating: If low prices persist during the fourth quarter of 2016 then as much as 4.6 billion barrels of the company’s oil reserves in Canada and North America would no longer qualify as proven reserves.   This makes ExxonMobil the latest in a […]

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IEEFA Exxon: The Problems Are More Than Cyclical

IEEFA Exxon: The Problems Are More Than Cyclical

All Signs Point to Low Oil Prices Going Forward

Some stock analysts say the problems afflicting ExxonMobil are cyclical, which would mean that a spike or increase in oil prices are on the horizon and that the company will move back into the black across the board when that happens.  But the fact is that a rebound in oil prices is unlikely. Independent assessments—from […]

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IEEFA Puerto Rico: Electric Company, Off the Mark on Its In-House Outlook, Is Spending Twice as Much on Fuel Than Projected

PREPA’s Low-Balling of Oil Prices Will Drive Power Rates Higher; FY 2017 Total May Exceed Estimate by $600 Million; Agency Forecast Ignored Professional Consensus

The Puerto Rico Electric Power Authority is seriously underestimating the price of oil in the fiscal-year budget it put into effect on July 1. The result is likely to be higher-than-predicted and increasingly unaffordable power rates for residents and businesses of Puerto Rico, an island commonwealth that gets most of its electricity from oil-fired generators. […]

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IEEFA Update: Peabody Investors Are in for a Bumpy Ride

Emerging From Bankruptcy, Coal Companies Are Now Entering a New Cycle of Financial Stress

Investors are in for a bumpy ride as Peabody Energy fashions its reorganization and emerges from bankruptcy. The company’s stock price has been volatile over the past two weeks, capturing the attention of hedge fund investors who have acquired a 5 percent stake in the company.     The stock rose from $1.74 per share […]

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IEEFA Exxon: Telltale Crossover in Late 2014 Marks Where a Major Oil Stock Began to Go South

A Decoupling From the Larger Stock Market 2 Years Ago Portends a Future in Which the World’s Biggest Oil Company Will Be Smaller and Will Not Pay Out as Much in Shareholder Distributions

The world is moving in fits and starts but with gathering momentum toward a more diversified, low-carbon energy mix. The evidence is all around us. One exhibit, of many, is in the report we published this week—“Red Flags on Exxon: A Note to Institutional Investors”—which includes the chart here: ExxonMobil Financial Performance, 2006 – 2015 […]

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IEEFA Update: Puerto Rico Energy Commission, in Challenging Utility’s Backward-Looking Plan, Sets a Much Wiser Course

IEEFA Update: Puerto Rico Energy Commission, in Challenging Utility’s Backward-Looking Plan, Sets a Much Wiser Course

A Sound Policy Path to Energy and Economic Prosperity; Rush to Bail Out Bondholders Will Only Make Matters Worse

In blasting the Puerto Rico Electric Power Authority for failing to produce a reasonable long-term plan for the island’s electric system, the Puerto Rico Energy Commission last Friday did its public a vital service. The commission, in its final order to PREPA to get its ducks in much better order, outlined a far more sensible […]

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IEEFA Alert: Peabody’s Plan to Emerge From Bankruptcy Is Likely to End in Bankruptcy Again 


IEEFA Alert: Peabody’s Plan to Emerge From Bankruptcy Is Likely to End in Bankruptcy Again 


Shades Of What Happened to Patriot Coal, a Spinoff That Overstated Minable Reserves and Was Overly Optimistic on the Effects of Its Cost-Cutting Strategies


Peabody Energy’s plan to emerge from bankruptcy will most likely end ironically. In another bankruptcy, that is. We’ve studied the plan and find it lacking in credibility on several points (here’s the underlying research memo we recently put together). The plan is overly optimistic on financial projections in key areas, in its coal-production outlook and […]

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Puerto Rico Redux: PREPA Should Go Back to the Drawing Board


Puerto Rico Redux: PREPA Should Go Back to the Drawing Board


After Agreeing to a Debt-Restructuring Deal that Benefits Consultants and Bondholders at the Expense of Ratepayers, Little Choice Now But to Start Over



Here’s a core tenant of any well-functioning electricity utility: Households and businesses in the service area of the utility must be able to afford the rates charged by the utility. When rates are too high,  damage of all sorts results. This is what’s happening today in Puerto Rico, where electricity rates exceed 16 cents per […]

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