Clare Capital uses the Enterprise Value/2P reserves ratio to give an indication of how the market is valuing a number of New Zealand and Australian comparators in the oil and gas exploration and production industry (as at 22nd September 2016). Companies with an EV less than NZ$20 million are excluded (such as Pan Pacific Petroleum).
The graph above highlights three values of each company in the Australasian Oil & Gas (O&G) Industry:
- Enterprise Value of the O&G company / Amount of latest reported 2P reserves [vertical axis]
- Amount of latest reported 2P reserves [horizontal axis]
- Enterprise Value of the O&G company [size of the bubble]
Green colouration denotes companies with New Zealand operations, while blue colouration represents Australian only operations. The closer a company is to the horizontal axis, the ‘cheaper’ its market valuation.
Market Valuation is set as at the 22nd September 2016.
The full PDF can be found here… Market Valuation of Oil & Gas Players.