Barclays on Integrated Oil Companies: Weekly Valuation and Price Performance

Barclays on Integrated Oil Companies: Weekly Valuation and Price Performance

Analyst, Paul Y. Cheng, said, "EV/2012 EBIDA: The group is currently trading at 6.0x EV/2012 EBIDA. Marathon (NYSE: MRO) is trading at the largest discount to the group at 5.0x, while Imperial Oil (NYSE: IMO) is trading at the highest premium at 9.3x EV/2012 EBIDA."

"Price/Net Asset Value: Currently, we estimate the group is trading at a 20% discount to its Net Asset Value (NAV). We estimate Exxon Mobil (NYSE: XOM) is trading at the highest of the group at a 2% premium to its NAV, while Murphy (NYSE: MUR) is trading at a 40% discount to its NAV."

EV/BOE: The group is currently trading at $14.4/boe with HSE at the highest among its peers at C$20.0/boe and Conoco Philips (NYSE: COP) at the low end at $11.2/boe. MRO's EV/boe is currently at a 149% premium to its PV10/boe, while MUR shows a 6% discount to its PV10/boe."

"Share Performance: YTD, the North America-based integrated oil companies are down 7%, with Chevron (NYSE: CVX) and XOM both showing the biggest increase, up 11%, and 9% respectively, while MUR and MRO both show the biggest declines, down 27% and 25%, respectively. Please note that MRO's share price decline reflects its spin-off on June 30, 2011. Adjusting for the spin-off, MRO shares would be up 20%. WTD, the group was up 10%."

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