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 Swamp Watch: Discord Within the Fossil-Fuel Industry Over What to Do Now

Wrangling, and Uncertainty, Over the Paris Agreement on Climate Change

The swamp is becoming quite the quagmire as arguments bubble up among coal, oil, and gas interests about whether the U.S. should withdraw from the Paris Agreement on Climate Change. With the Trump administration in power, the fossil-fuel industry now has the keys to the kingdom. Yet its giants appear confused and in disarray. Whatever […]

IEEFA Op-Ed: 5 Reasons Puerto Rico’s Electric Debt Deal Is a Rip-Off

IEEFA Op-Ed: 5 Reasons Puerto Rico’s Electric Debt Deal Is a Rip-Off

Still Time and Space to Keep This Ruinous Scheme From Proceeding

The new debt proposal announced by Gov. Ricardo Roselló for the Puerto Rico Electric Power Authority (PREPA) and its bondholders on April 6 will make an already untenable economic situation for the island’s residents and businesses even worse. The electric system’s $9 billion debt is only one piece of Puerto Rico’s overall debt of $72 […]

April 27, 2017 Read More →

IEEFA Update: Exxon Sends Investors Down a Russian Rabbit Hole

Well-Timed Ploy to Divert Attention From Balance-Sheet Rot Eating Away at World’s Biggest Oil Company; Public Relations Plum for Putin; Another Blow to Shareholders

News comes today that ExxonMobil is applying for a U.S. government waiver on sanctions against the Kremlin that are keeping the company from developing new oil reserves in Russia. The sanctions in question, imposed in response to Russia’s annexation of Crimea in 2014, specifically forbid U.S. corporate deals with Rosneft and specifically named the head of the […]

April 20, 2017 Read More →
IEEFA Update: The Emperor Exxon Isn’t Wearing Very Much

IEEFA Update: The Emperor Exxon Isn’t Wearing Very Much

A Report to Heed: ‘Why Investors Should Treat Oil Company Energy Forecasts With Caution’ (and Perhaps ExxonMobil’s With the Most Caution)

The energy sector is going through a time of unprecedented change, and investors should take heed. We publish often on the sweep and pace of this shift in our ongoing analysis of the U.S. coal industry; our research on oil majors like Exxon; our work on public policy from Puerto Rico to Norway; our commentary […]

April 11, 2017 Read More →

IEEFA Update: Lacking Customers, PacRim Bails Out of Its Alaska Coal Project

A New Mine on Cook Inlet Was as Crazy as It Sounded

Word out of Alaska this morning that investors have pulled out of the proposed Chuitna Coal Project near Alaska’s Cook Inlet was presaged by the fast-moving global transition in electricity generation. Research we published two years ago—and that we outlined in an August 2015 letter to the Alaska Department of Natural Resources—pointed to where Delaware-based […]

April 4, 2017 Read More →
IEEFA Puerto Rico: The PREPA Restructuring Plan Before Congress Is Not Realistic and Does Not Hold All Players Accountable

IEEFA Puerto Rico: The PREPA Restructuring Plan Before Congress Is Not Realistic and Does Not Hold All Players Accountable

Bondholders and Dealmakers Are Not Stepping Up; Citizen Ratepayers and Taxpayers Are Left Holding the Bag Under Proposal Before Congress

Puerto Rico’s electricity-system imbroglio is in the public eye today in Washington, where a house subcommittee is holding a public hearing on a plan to restructure the Puerto Rico Electric Power Authority’s staggering $9.5 billion debt. We’ve written a letter to the subcommittee chairman, Rep. Doug LaMalfa, detailing how the debt restructuring plan sells Puerto Rico […]

March 22, 2017 Read More →

IEEFA Update: Peabody’s Recovery Plan Overstates the Market for Coal

Fragile Back-to-Black Balance Sheet Stands to Leave Investors in the Red; Likely Underperformance on Production and Revenue Forecasts

Last week’s bankruptcy court approval of Peabody Energy’s reorganization plan should be cause for investor alarm. The flaws in the plan are fundamental: First, the company is claiming an increase in coal sales at a time of a declining market. The company in fact faces the likely loss of five to seven million tons per […]

March 20, 2017 Read More →
IEEFA Exxon: White House’s Endorsement Is Just More Evidence of Distress

IEEFA Exxon: White House’s Endorsement Is Just More Evidence of Distress

Stock Hits 52-Week Low; Turnaround Plan Is Questionable; Buyers Beware

ExxonMobil’s deteriorating financial condition is on full view today after its stock opened at a 52-week low on news of lower oil prices. Investors, it’s safe to say, have met the company’s recent announcement of new capital investment with skepticism. ExxonMobil’s stock has now fallen by 15 percent just since this past December, a period in […]

March 9, 2017 Read More →
IEEFA Update: Wall Street Gets the Exxon Heebie-Jeebies

IEEFA Update: Wall Street Gets the Exxon Heebie-Jeebies

Skeptical Oil Industry Analysts Greet a Changing of the Guard

News of note this week on sentiment toward ExxonMobil comes by way, among others, of the Wall Street Journal: “Exxon has lost cachet among institutional investors in recent years: Most portfolios hold a smaller proportion of Exxon stock than its relative size in the S&P 500 index, according to Evercore ISI analyst Doug Terreson.” “This […]

March 3, 2017 Read More →

IEEFA Exxon: Questions, More Questions

What, Really, Is the Future of the Oil Industry? And How Believable Are Company Projections?

Much will be written this week about the oil industry’s abandonment of key reserves in its oil sands holdings. ExxonMobil is suddenly smaller than it was. So is Canada’s energy industry, and so are world oil markets. All said, the oil industry, globally speaking, has recently now lost about 10 percent of its proven and […]

February 23, 2017 Read More →