France's largest corporation is the top pick of the European oil majors, writes Mark Iannotti, an analyst at Bank of America Merrill Lynch. This is because exploration and production volume should grow through the end of 2009 and beyond, and because Total's balance sheet and long-term opportunities are very good. The company's cash exceeded its debt in 2008, and it generated $7.8 billion in free cash flow. Total is due to start production on new projects in the Gulf of Mexico, Angola, and Qatar, which Iannotti says should drive volume. The company is also planning to sell off its 13% stake in French pharmaceuticals company Sanofi-Aventis.
--K.B.
