Subject. The article analyzes assets of the largest public companies operating in the oil and gas industry from 2006 to 2018, like ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, Devon Energy, Anadarko Petroleum, PAO Gazprom, PAO NK Rosneft, PAO LUKOIL, and others. Objectives. The aim is to make a comprehensive statistical analysis of changes in absolute values and the structure of assets in the public sector of the oil and gas industry. Methods. The study employs methods of statistical analysis and generalization of materials of official annual reports based on the results of financial and economic activities of the largest public oil and gas corporations. Results. Using the comprehensive analysis of balance sheets of 25 oil and gas companies, I determine changes in the size and structure of assets in the public sector of the industry, and establish the main factors that contributed to this transformation. Conclusions. The findings revealed an increase in the book value of assets in the majority of leading public oil and gas companies. Large mergers and acquisitions and agreements for new field developments also contributed to the increase. The study established that the protracted industry crisis resulted in reducing the proportion of current assets in order to release funds for revenue increase. That was why oil and gas companies sought to accelerate the collection of receivables, primarily by means of trade component. It was also determined that they channeled a part of funds thus collected to short-term financial investments.
Subject. The article considers new sanctions against the oil and gas sector of Russia and the policy of leading foreign oil and gas companies. Objectives. The focus is on the assessment of export prospects of the fuel and energy complex. Methods. The study employs methods of comparative analysis and generalization. Results. The paper reveals that new sanctions against the oil and gas industry of Russia are aimed at limiting the export of domestic fuel and energy products, access to oil refining technologies, and investment inflows. The import of hydrocarbons from Russia is not critical for the United States, Great Britain, Canada, and Australia, while the European Union is seriously dependent on the supply of Russian energy resources, and, therefore, there is a time reserve for transformation of the entire domestic energy sector. Conclusions. New sanctions against the energy sector are a powerful external impetus for the domestic petrochemical industry development.
Subject. The article investigates ratios of market capitalization to production and proven reserves held by the twenty five major public oil and gas corporations within 2008 through 2018. Objectives. I trace key trends in ratios of market capitalization to production and proven reserves in major public oil and gas corporations. The article also determines what caused such transformation for the analyzable period and indicates whether such multipliers are applicable to business valuations in the oil and gas sector. Methods. I use methods of comparative, financial and economic analysis, and summarize materials of financial statements. Results. The analyzable multipliers were found to be applicable to business valuation of oil and gas corporations. If a company has oil refining and petrochemisry segments in its architecture, it will have a favorable effect on ratios. The company will also benefit if its profitability is higher than that of competitors. National companies and their indicators are seen to be influenced by the country factor, which should be taken into account for purposes of business valuation. Ratios depend on the availability of proven reserves. This aspect influences the multiplier of ratio of market capitalization to proven reserves. Therefore, it is advisable in case of similar proven reserves in comparable companies. Hence, it is more preferable to use the multiplier of the ratio of market capitalization to production. Conclusions and Relevance. It is acceptable to use the multiplier with reference to the information on production even if the profitability goes down and the debt burden increases in the listed sector of the global oil and gas industry, while the ratio based on proven reserves is more reasonable as an auxiliary indicator. The findings can be used to appraise the possible value of oil and gas assets as part of the comparable approach. They can also underlie measures for raising the market capitalization of public oil and gas companies.
Subject. The article focuses on ratios of market capitalization to production and market capitalization to proved reserves of the twenty five leading publicly traded oil and gas companies within 2008 through 2018. Objectives. The study aims to trace the key trends in ratios of market capitalization to production and market capitalization to proved reserves of corporations in the oil and gas industry, as well as identify the ones in their change within the studied period and identify the factors that have caused these changes. Methods. For the study, I used comparative, and financial and economic analyses, and generalization of materials of the companies' consolidated financial statements. Results. The article finds that the multipliers under study are suitable for estimating the value of oil and gas corporations. It was determined that the presence of segments of oil refining and petrochemistry in the structure of the company affects the level of coefficients favorably. It has been established that higher profitability compared to the competitors' one is a positive factor. On the contrary, the growth of the debt component has a negative impact. The impact of the country factor, which is required to be taken into account when assessing the value, is manifested in the performance of domestic companies. The availability of proved reserves is reflected in the coefficient values. This characteristic has the most significant impact on the value of the ratio of market capitalization to proved reserves. Therefore, its use is appropriate for similar availability of proved reserves of compared companies. Therefore, it is preferable to use a multiplier of the market capitalization-to-production ratio. Conclusions. It is acceptable to use the multiplier with reference to the information on production even if the profitability goes down and the debt burden increases in the stock market sector of the global oil and gas industry, while the ratio based on proved reserves is more reasonable as an auxiliary indicator.
Subject. The article focuses on ratios of the market capitalization or enterprise value to balance sheet assets or equity of the twenty five leading publicly traded oil and gas companies within 2008 through 2018. Objectives. The aim of the study is to trace key trends in ratios of the market capitalization or enterprise value to balance sheet assets or equity of corporations in the oil and gas industry, as well as identify the key trends in their changes within the studied period, and establish factors that caused those changes. Methods. For the study, I used the methods of comparative, financial and economic analyses, summarizing financial reporting data. Results. The article establishes that the multipliers studied are acceptable for assessing the value of oil and gas companies, but it is preferable to use asset-based ratios. The multiples of the ratio of market capitalization to assets or market capitalization to equity in the oil and gas industry are characterized by a decrease, and the lack of stability of values does not allow using these ratios for other dates in valuation. It is necessary to analyze in detail the results of financial and economic activities and the structure of assets in order to select an analogue company, especially in times of crisis. There is a country factor in the stock market valuation of oil and gas assets. The influence on the market capitalization of the size of the debt component in the structure of total capital has been established. An increase in the level of debt burden over time was revealed. It is advisable to use an indicator of enterprise value that includes net debt instead of market capitalization when there is a difference in debt burden between the assessed corporation and the analogue company. Conclusions and Relevance. The overall decline in profitability and the increase in debt load in the stock market sector of the global oil and gas industry should be taken into account when using multipliers based on assets and shareholder capital in the assessment of the value of oil and gas corporations through a comparative approach. The findings can be used to appraise the value of oil and gas assets as part of the comparative approach and decide on actions for raising the market capitalization of publicly traded oil and gas corporations.
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