Valuation
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- Category: Politics: Economics
- Date Submitted: 12/16/2014 09:10 PM
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Oil & Gas Valuation – Quick Reference http://breakingintowallstreet.com
Oil & Gas Valuation: Comparable Public Companies & Precedent Transactions
Picking a set of comparable companies or precedent transactions for an oil & gas company is very similar to how you would pick them for any other company – here are the differences: 1. Rather than cutting the set by revenue or EBITDA, you would instead select the set based on Proved Reserves or Daily Production (in addition to the normal geographic and industry criteria). 2. Instead of traditional metrics like revenue or EPS, you list the metrics and multiples that are relevant to an energy company: EBITDAX, Proved Reserves, Daily Production, the Oil Mix %, and so on. Please see the previous handout in this course on Oil & Gas Key Metrics to see the full list and to learn how to calculate these metrics and multiples.
Comparable Companies ‐ North American Oil & Gas E&P Companies with Over 10 Tcfe Proved Reserves ($ in Millions Except Per Share, Reserve, and Production Data) Operating Statistics Company Name Chesapeake Energy Corporation Anadarko Petroleum Occidental Petroleum Corporation Apache Corporation Devon Energy Corporation EOG Resources, Inc. Maximum 75th Percentile Median 25th Percentile Minimum XTO Energy Inc. Valuation Statistics Company Name Chesapeake Energy Corporation Anadarko Petroleum Occidental Petroleum Corporation Apache Corporation Devon Energy Corporation EOG Resources, Inc. Maximum 75th Percentile Median 25th Percentile Minimum XTO Energy Inc. Capitalization Equity
(1)
Proved EBITDAX
(3)
Daily Production (MMcfe) 2,480.8 3,624.0 3,870.0 3,499.7 3,830.1 2,118.0 3,870.0 3,778.6 3,561.9 2,735.5 2,118.0 2,863.6 US Diversified Production
Proved Developed Oil
(4)
R / P Ratio (Years) 15.7 10.5 13.7 11.1 11.7 ...
Oil & Gas Valuation: Comparable Public Companies & Precedent Transactions
Picking a set of comparable companies or precedent transactions for an oil & gas company is very similar to how you would pick them for any other company – here are the differences: 1. Rather than cutting the set by revenue or EBITDA, you would instead select the set based on Proved Reserves or Daily Production (in addition to the normal geographic and industry criteria). 2. Instead of traditional metrics like revenue or EPS, you list the metrics and multiples that are relevant to an energy company: EBITDAX, Proved Reserves, Daily Production, the Oil Mix %, and so on. Please see the previous handout in this course on Oil & Gas Key Metrics to see the full list and to learn how to calculate these metrics and multiples.
Comparable Companies ‐ North American Oil & Gas E&P Companies with Over 10 Tcfe Proved Reserves ($ in Millions Except Per Share, Reserve, and Production Data) Operating Statistics Company Name Chesapeake Energy Corporation Anadarko Petroleum Occidental Petroleum Corporation Apache Corporation Devon Energy Corporation EOG Resources, Inc. Maximum 75th Percentile Median 25th Percentile Minimum XTO Energy Inc. Valuation Statistics Company Name Chesapeake Energy Corporation Anadarko Petroleum Occidental Petroleum Corporation Apache Corporation Devon Energy Corporation EOG Resources, Inc. Maximum 75th Percentile Median 25th Percentile Minimum XTO Energy Inc. Capitalization Equity
(1)
Proved EBITDAX
(3)
Daily Production (MMcfe) 2,480.8 3,624.0 3,870.0 3,499.7 3,830.1 2,118.0 3,870.0 3,778.6 3,561.9 2,735.5 2,118.0 2,863.6 US Diversified Production
Proved Developed Oil
(4)
R / P Ratio (Years) 15.7 10.5 13.7 11.1 11.7 ...