Exxon, Eat Our Dust
If you just look at Exxon, you’d never know we were in a horrible recession. They’re planning massive spending just to keep up with demand!
And by massive spending we mean dropping $29 billion in 2009 alone, as part of its effort to beef up supplies. The spending will help get nine projects off the ground this year, that will ultimately increase Exxon’s oil production by about 485,000 barrels per day.
"Around the house it feels pretty much business as usual," Chief Executive Officer Rex Tillerson told reporters after an analysts' meeting. And the company's spending for 2009 could rise even higher, Tillerson said, if he sees new opportunities.
What’s the trade?
Pete Najarian thinks Exxon's spending speaks to how important all types of energy will become in the not too distant future.
And he likes trading that trend with the engineering firms. "I’d take a look at McDermott and Fluor ," he counsels. "I really like their prospects going forward."
"Another company to watch in the space is URS Corp," adds Guy Adami.
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Trader disclosure: On Mar. 6th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (GDX); Najarian Owns (DNA) Calls; Najarian Owns (FCX) Spread; Najarian Owns (GLD) Put Spread; Najarian Owns (MS) & (MS) Calls; Najarian Owns (MSFT) & (MSFT) Calls; Najarian Owns (PNC) Put Spread; Najarian Owns (X) Call Spread; Najarian Owns (V) & (V) Calls; Najarian Owns (WFC) & (WFC) Calls; Finerman Owns (WFC) Preferred; Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Owns (DNA) & (DNA) Calls; Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Owns (MSFT), (PBR), (RIG), (TGT); Finerman's Firm Is Short (VNO), (BAC), (BBT), (IYR), (IJR), (IWM), (MDY), (SPY), (USO); J. Najarian Owns (AA), (FDO), (M); J. Najarian Owns (MS) & (MS) Puts; J. Najarian Owns (BAC) Preferred; J. Najarian Owns (FAS)