Bond rating agency Fitch put out a report on Citgo, saying that its first-quarter earnings (EBITDA) were almost as much as full-year earnings in 2010. The company is about to have all sorts of free cash flow, Fitch says.
As usual, there are several ways to see this:
– The Venezuelan state is going to be happy to have another cash generator on its hands, along with the $100-a-barrel prices it’s getting at PDVSA
– US drivers can go back to scapegoating Hugo Chavez for their $4 a gallon gasoline
– People looking for investment opportunities have all the more reason to storm over to other US refiners
– Lawyers for Exxon Mobil and ConocoPhillips are likely drafting up liens on that cash, and probably on the properties themselves
(add your own)