Report #1 - Oil and Gas FINAL

8/21/2019 Report #1 - Oil and Gas FINAL

1/16

Oil & Gas Overview

Queen’s Capital

Evan Burns, Senior Analyst

Kelvin Li, Analyst

Hans Shen, Junior Analyst

Stephen Peng, Junior Analyst


2/16

Queen’s Capital

Our mission here at Queen’s Capital is to increase the value of our porolio of securies by

outperforming various indexes on a risk-adjusted basis; to help students develop praccal investment

skills and test them in the markets; and to create superior access to career opportunies in the

investment and nancial industry.

Queen’s Capital achieves this by giving bi-weekly educaonal presentaons, reports on industry news,

and by managing a porolio of equies with investor capital. Queen’s Capital currently manages

an $80,000 diversied porolio of American and Canadian equies focusing on several investment

strategies including fundamental, technical and value invesng.

Queen’s Capital creates iniaves to bring in speakers from an array of rms to educate students

about the Capital Markets and invesng. We regularly send out emails with opportunies that are nototherwise adversed on campus. These career-related acvies in coordinaon with one another give

Investment Club members a denite advantage in the investment management career search.

At Investment Club meengs, you will begin to see familiar faces – these are the people who share your

interest and passion in invesng. We coordinate regular mixers to help in geng to know one another.

Eventually, you will noce that many of these faces will become friendships, which we aspire to have

you carry on with you past your me here at Queen’s University.

Jehan Ghandhy Jehan GhandhyCo-Chair, Queen’s Capital

Mark BalovnevMark Balovnev

Co-Chair, Queen’s Capital


3/16

02 05 13Message from

the execuve

Recent

industry

trends

Oil and gas

fundamentals

04Industry

overview


4/16

Oil and gas companies are comprised of three segments: upstream, midstream and downstream. In reality,

most large oil companies are known as "integrated" because their operaons combines all three stages of

operaons, which take place aer the producon phase through to the point of sale. Large integrated compa-

nies include Exxon Mobil, Royal Dutch Shell, BP, etc.

Upstream IndustryCompanies in the upstream industry involves the exploraon and producon of crude oil and natural gas. Up-

stream rms taking the rst steps to rst locate, test and drill for oil and gas. Later, once reserves are proven,

upstream rms will extract any oil and gas from the reserve. The upstream is somemes known as the explo-

raon and producon (E&P) sector. Because Alberta accounts for more than 80 per cent of Canada’s oil and

gas producon, many upstream businesses are based in Alberta and most have their head oces in Calgary.

Midstream Industry

The midstream industry processes, stores, markets and transports commodies such as crude oil, natural

gas, natural gas liquids (NGLs, mainly ethane, propane and butane) and sulphur. Midstream acvies are

commonly included as part of downstream operaons for much of the oil and gas industry. The midstream

and downstream acvies take place aer the inial producon phase and through to the point of sale. The

midstream provides the vital link between the far-ung petroleum producing areas and the populaon cen -

tres where most consumers are located. In Canada, transmission pipeline companies are a major part of the

midstream petroleum industry. Most of these companies are also based in Calgary, although their acvies

extend across the country, into the United States and somemes abroad.

Downstream Industry

The downstream industry takes place aer the producon phase, through to the point of sale. Downstream

operaons can include rening crude oil and distribung the by-products down to the retail level. By-prod-

ucts can include gasoline, natural gas liquids, diesel and a variety of other energy sources. Includes oil

reneries, petrochemical plants, petroleum products distributors, retail outlets and natural gas distribuon

companies. Although many downstream companies are headquartered in Calgary, the largest centres of

acvity are near Sarnia, Ontario, and Edmonton, Alberta. The downstream industry touches every province

and territory-wherever consumers are located-and provides thousands of products such as gasoline, diesel,

jet fuel, heang oil, asphalt, lubricants, synthec rubber, plascs, ferlizers, anfreeze, pescides, pharma-

ceucals, natural gas and propane.

Integrated Industry

A business enty that engages in the exploraon, producon, renement and distribuon of oil and gas.

Given the high entry costs relang to many oil and gas industry operaons, many of the world's largest oil

and gas companies, like Chevron Corporaon and Exxon Mobile, are integrated. Typically, integrated compa -

nies divide their various operaons into categories: upstream, which includes all exploraon and producon

endeavors, and downstream, which is conned to renement and markeng acvies. Because integrated oil

and gas companies are involved in so many facets of the fossil fuel industry, oen their business boom lines

can be counterintuive. For example, during mes of rising crude prices, an integrated oil and gas company

may actually have lower prot margins than a non-integrated rival as a result of having greater downstream

than upstream capability, or vice-versa.

INDUSTRY OVERVIEW


5/16

The upstream stage of oil and gas industry involves the exploraon and producon (E&P)

of resources. The upstream sector includes the searching for potenal underground or

underwater crude oil and natural gas elds, drilling of exploratory wells, and subsequently

drilling and operang the wells that recover and bring the crude oil and/or raw natural gas

to the surface.

Rising Cost and Project Delays Reduced Demand for EU Oil Shares

The price of European stocks and stocks with exposure to Russia have underperformed the

Stoxx600. This reects the increased amount of me spent by rms looking for potenal

reserves, and thus increasing cost and cung into rm prots. The increased amount of

delays was due to a growing share of developments in regions that were dicult to explore,

such as in oshore deep water. However, shares in integrated oil companies outperformed

E&P companies aer management raised dividends.

U.K. Shale and Iran Are Important Year-End Themes for Europe Oil

• IGAS, Total May Seek to Expand in U.K. Shale at Licensing Round

U.K. is granng onshore share licensing, hoping to spur a widespread exploraon eort

hoping to accelerate the iniaon of shale and gas producon in Britain to rival increased

producons from the U.S. Companies interested include GDF, Suez, Total, IGas Energy, and

Cuadrilla Resources.

• Total May be First to Resume in Iran If Sancons Lied

On the other hand, Iran has opened up itself to internaonal oil companies and

developments in BP’s reorganizaon of U.S. shale operaons. E.U. sancons against Iran

may be lied within months as talks on nuclear curbs on the country are under way. Total

may be the rst to enter and resume its construcon of a 2 billion cubic feet per day

Liqueed Natural Gas export facility. The facility will be fed from the world’s largest natural

gas eld, South Pars, jointly owned by Iran and Qatar. Long term themes include Europe’squest to reduce reliance on Russian gas and rms cung investment budgets.

Russia-Ukraine Row Shows Europe Needs to Diversify Energy Supply

• EU Sancons on Russia Set to Transform Energy Supply

Cing recent conicts in Eastern Europe, Eastern European countries are looking to diversify

sources and to increase storage capacity. However, this has been delayed due to a lack of

funds. EU looks to diversify energy supplies via new pipelines, increased liqueed natural

gas imports, a higher share of renewables and greater indigenous producon via shale gas.

UPSTREAMRECENT TRENDS


6/16

Education, Network, DevelopmentHowever, EU sancons on Russia may hurt EU companies’ prospects of exploing Russia’s resources. Hampering Russia’s oil and gas

producon may also raise oil prices and force the EU to diversify its sources of supply at a higher cost.

Bull Case: Sancons to Cap Russia E&P Access Boost Oil Price

1. Barring Russian companies from access to the latest U.S. and EU E&P technology may reduce Russian oil exports and raise prices.

Especially hurul to older oil elds in Russia.

2. Forecasts reveal that addions to LNG fell by 34% due to many planned liquefacon plants never open because of their

complexity and expense. Hopefully, the reduced supply with underpin the LNG price.

Bear Case: High Execuon Risk Ensures LNG Supply Remains Tight

1. Sancons against Russia risk restricng western companies’ access to the latest oil-eld service technologies and other E&P

projects being pursued.

2. The discovery of new European natural gas resources creates a bearish scenario for liqueed natural gas imports, while also

represenng a threat to the commercial viability of planned and exisng EU re-gasicaon terminals.

Libya Return, Strong Dollar Ease EU Oil Price Woes

EU oil companies are cushioned from the recent oil price decline due to most of their revenues being in dollars while a large part of

costs are billed in local currencies. In addion, the return of Libyan oil is helping the region’s oil majors in terms of more output and

lower feedstock supply costs from reneries.

OMV Producon Rebounds, Augurs Well for Libya Oil Producers

OMV (an integrated internaonal O&G company) recorded a rebound in O&G output in 3rd Quarter partly due to resumed oil

producon in Libya. OMV’S competors also beneted from Libya.

Weakening Euro Eases 3Q Price Slump Scare for EU Oil Companies

The euro’s 7.5% depreciaon vs the dollar during 3Q means Brent crude’s drop will have less of an impact on Total, Eni, Repsol, OMV

and other oil companies reporng in the currency. While the Brent price fell more than 16% in dollar terms, the decline was only 9.4%

in euro terms.

Russian Balc, Black-Sea Crude Loading Extends Decline in 3Q

Loading schedules for two major Russian ports accelerated their decline in July and August, despite having started to drop two years

ago.


7/16

MIDSTREAM

Overview

Midstream O&G describes one of the three major stagesof oil and gas industry operations. Midstream activities

include the processing, storing, transporting and market-

ing of oil, natural gas and natural gas liquids.

Midstream activities are commonly included as part of

downstream operations for much of the oil and gas indus-

try. The midstream and downstream activities take place

after the initial production phase and through to the point

of sale.

The midstream industry processes, stores, markets and

transports commodities such as crude oil, natural gas,

natural gas liquids (NGLs, mainly ethane, propane andbutane) and sulphur. The midstream provides the vital link

between often remote petroleum producing areas and the

population centres where most consumers are located.

In Canada, transmission pipeline companies are a major

part of the midstream petroleum industry. Most of these

companies are also based in Calgary, although their activ-

ities extend across the country, into the United States and

sometimes abroad.

Recent High Profile Transactions

1. Kinder Morgan Consolidation

Kinder Morgan plans to combine its disparate partnerships

into a single company that will enable the biggest pipeline

operator in North America to continue growing.

The deal, for $44 billion in cash and stock and the assump-

tion of $27 billion in debt, will be the biggest energy

industry merger since Exxon bought Mobil in 1999, accord-

ing to Bloomberg. Houston-based Kinder Morgan operates

the largest pipeline and storage network in the U.S., with

80,000 miles of pipelines and 180 storage facilities.

The deal underscores the massive demand for oil and

gas infrastructure, especially in the northeastern U.S.

Producers have tapped huge new oil and natural gas

reserves in shale plays, yet they need pipelines that can

transport surging oil and gas production from shale plays


8/16

to refineries. Kinder, which has in the past favored acquisitions over new construction, will have more

flexibility with its simplified corporate structure.

Kinder Morgan employs a Master Limited Partnership (MLP) Corporate structure, which allows the

firm to pay taxes as it makes distributions to its unit holders, rather than paying taxes from its profit

In order to be legally classified as an MLP, the partnership must derive ~90% of its cash flows from

real estate, natural resources and commodities.

Kinder Morgan Inc. Corporate Structure: El Paso Pipeline Partners, Kinder Morgan Management

Kinder Morgan Energy Partners

2. Western Sanctions on Russian Pipelines

In response to hostilities occurring along the Russian-Ukrainian Border, economic sanctions imposed

by the United States and its Allies have limited Russian oil pipelines ability to operate in the regions

surrounding Russia’s western border. In response, Russian pipeline operators including, Gazprom and

Transneft, have pushed to secure new business with their eastern neighbors, namely China.

Reuters recently reported that Western sanct ions are expected to delay Transneft’s Zapolyarye-Purpe

and Kuyumba-Taishet pipelines by two to three years. Further, Gazprom’s Nord Stream pipeline plan

which was being developed to deliver Russian gas to Britain, has been scrapped due to worseningrelations between the two governments.

These sanctions, combined with suppressed oil prices are pushing Russia towards its second recession

in five years. A recent statement by the Bank of Russia in Moscow further hinted at this possibility

Over the past three months, the Ruble has plunged 21% against a composite of its peers.


9/16

DOWNSTREAM

The downstream poron of oil and gas involves rening petroleum crude oil and the processing and purifying of

natural gas. The products derived from oil and natural gas must also be marketed and it is the downstream poron’s

responsibility to do so. Examples of products generated from reneries include gasoline or petrol, kerosene, jet fuel,

diesel oil, heang oil, fuel oils, lubricants, waxes, asphalt, natural gas, and liqueed petroleum. Hundreds of other

petrochemicals may also be formed.

Dividend and Buybacks Strengthen Support for Rener Equies

There is a common presence of free cash ow amongst rener companies. This can be capitalized and used to in-

crease or sustain dividend yields or potenally for purchasing share buybacks. This will strengthen support of rener

equies in the market. The increased volality of the Brent Crude bench has caused shares to be aected. This isfurther enhanced by an increasing uncertainty of regulatory issues within the industry. Rener operaons have been

given stability due to increasing export opportunies. Potenal markets in Europe and Lan America support this.

1st Quarter Leaders in Rening Industry

North American Mining and its markeng peer group is up 0.4% ytd. Reneries have been underperforming as

energy peers have been up 15% ytd. The group’s total returns has been overall at as Brent to World Texas Inter-

mediate dierenals have come closer. The two reneries that stood out since rst quarter earnings are PBF Energy

and Northern Tier. The only companies gaining posive returns of 1.74% and 1.16% respecvely. All companies have


10/16

outperformed the S&P within the last 3 months.

EV/EBITDA of Rener Equies Below Average Signaling Value

EV/EBITDA is commonly the mulple used to value rener equies. BI U.S. rening peer group’s 2014 EV/EBITDA mulple is

trading at 5.6x. This is below the average and is rebounding from a low of 4.9x aer crude dierenals began to improve. This

is signaling value in reneries. The S&P Energy Sector Index is trading 6.5x above its historical trading range at a 16% premium

to reneries. The potenal for future oil exports outside of the United States has caused excitement over rener equies to

lower due to the potenal of less future domesc producon.

Export Opportunies and Flexible Transportaon Opons are Posive Outlooks for Reneries

Growth in exports for gasoline and dislled products is causing reneries to have a strengthened demand. This is further in-

creased by the revival of domesc oil producon and its increased demand. Emerging construcon of rail allows companies to

take advantage of greater exibility. This leads to a potenal decrease in transportaon costs that can inevitably increase the

boom-line of North American rener equies.

Crude Export Bans Could be lied

In the United States it is illegal

to export crude oil, but the ght

shale oil being produced domes-

cally does not match the capacity

of the reneries. US reneries

are beer suited to process

heavy crude. This light oil is not

connected by infrastructure to

reneries that can process this

crude. Therefore there is a strong

consideraon to overturn the ban

on exports to deal with this prob-lem. The increased internaonal

trade of crude from liing this

ban will allow reneries to have

greater capacity allocate their

acvity therefore resulng in more

gasoline producon.


11/16

INTEGRATED

Canadian Integrated Oil Companies Outperform U.S. Peers, S&P 500

Canadian integrated oil companies have outperformed U.S. peers, along with the broader North American equity market year to date. Im-

perial, Suncor, and Cenovus led the returns, propelled by improved Canadian crude oil prices. Chevron (posive 1%) and Exxon (negave 3%)

have both underperformed the peer group and the broader S&P 500 (7.5%) in 2014.

ONGC, Sinopec Shares Outperform Indexes on Deregulaon Opmism

Opmism that India and China will deregulate natural gas prices has bolstered share prices of ONGC, Sinopec and PetroChina. The three com-

panies have outperformed local benchmarks by at least 10% in the rst ve months of 2014. China may also ease investment rules regarding

working capital requirements, freeing up more lucrave projects for oil companies.

Rising Cost, Project Delays Reduced Appete for EU Oil Shares

European stocks as well as companies with exposure to Russia underperformed the overall market this year, reecng increased delays in

the development of oilrigs. Delays in development in these regions are the result of technical challenges and costs associated with oshore

deep-water extracon. Shares in integrated oil companies performed beer than E&P companies because of these dicules along withmanagement meeng shareholder demands to raise dividend yield.

Supply Growth, Cuts Form Integrated Oil Bull & Bear: Outlook

The BI Outlook outlines major themes and trends shaping the global integrated oil industry. The Bull Case reects reduced supply, due to

limited spare oil producon capacity in the Middle East. The Bear Case counters that fuel consumpon may be restrained in 2014, due toweaker-than-expected global economic growth. Furthermore, the connued resumpon of capacity in countries such as Iran and Iraq may

depress crude oil prices.

OPEC Outages Prop Up Oil Price, Mask Subdued Demand: Bear Case

OPEC is faced with supply disrupons, totaling 2.6 million barrels a day, stemming from security challenges, regional hoslies, and geopo-

lical instability. These disrupons have supported modest declines in oil prices and masked greater surpluses. If these hoslies subside,

addional capacity may drive oil prices even lower and allow for OPEC to beer curtail its volume to drive prices to its own content.

Integrated Oil & Gas Companies

Integrated Oil & Gas Companies engage in all four funcons of oil & gas business operaons: extracon, producon, renement, and distribuon.

Due to huge capital requirements necessary to sustain mulple business parts, and dicules involved in vercal chain management, integrated

O&G companies happen to be the largest companies in the business. Exxon Mobil, Royal Dutch Shell plc, and BP plc are the world’s largest inte-

grated O&G companies by barrels of producon per day (b/d) while Suncor Energy is Canada’s largest integrated O&G company.


12/16

2014 Q3, Q4 Brent and Crude Oil Dip

West Texas Intermediate crude, the U.S. benchmark, is trading down

more than 19% this year while the European benchmark – Brent

Crude – is down nearly 24%. This vercal decline amid an already

volale market is an unexpected economic smulus for consum-

ers, but the eect is far from posive for the integrated oil and gas

companies. ConocoPhillips, the third largest integrated O&G company

in the U.S., became the rst supermajor to announce plans of scaling

back drilling.

The price drop of oil can be aributed to the resurgence of the U.S.dollar, slower economic growth in emerging countries, and decreased

global regulaon on oil produciton. Saudi Arabia, the world’s largest

producer of oil – a capacity greater than 11.6 million bbl/d of total

petroleum, announced that it had no plans on slowing down produc-

on to sustain price levels.

Furthermore, the U.S. is imporng 35% less crude due to domesc

hydrolic fracturing capabilies, a move which lowers global demand,

and consequently, price.

Pruning Assets and Capex Reducons may Increase Earnings

In response to falling brent and crude oil prices, North American

Integrated O&G companies such as Exxon Mobil have looked at re-

ducons in capital expenditure to improve earnings and increase free

cash ow. Integrated companies can increase protability by pruning

assets that have shown weak performance relave to extracon

costs; and instead, focus on maximizing renary margins as raw ma-

terial costs are at a mul-year low. Companies such as Shell have also

sold subsidiary units to smaller, more specialized peers and private

equity funds to raise capital for dividends and share repurchases.

Integrated Oil & Gas Companies

Integrated Oil & Gas Companies engage in all four funcons of oil

& gas business operaons: extracon, producon, renement, and

distribuon. Due to huge capital requirements necessary to sustain

mulple business parts, and dicules involved in vercal chain

management, integrated O&G companies happen to be the largest

companies in the business. Exxon Mobil, Royal Dutch Shell plc, and

BP plc are the world’s largest integrated O&G companies by barrels

of producon per day (b/d) while Suncor Energy is Canada’s largest

integrated O&G company.

2014 Q3, Q4 Brent and Crude Oil Dip

West Texas Intermediate crude, the U.S. benchmark, is trading down

more than 19% this year while the European benchmark – Brent

Crude – is down nearly 24%. This vercal decline amid an already

volale market is an unexpected economic smulus for consum-

ers, but the eect is far from posive for the integrated oil and gas

companies. ConocoPhillips, the third largest integrated O&G company

in the U.S., became the rst supermajor to announce plans of scaling

back drilling. The price drop of oil can be aributed to the resurgence

of the U.S. dollar, slower economic growth in emerging countries,

and decreased global regulaon on oil produciton. Saudi Arabia, the

world’s largest producer of oil – a capacity greater than 11.6 million

bbl/d of total petroleum, announced that it had no plans on slowing

down producon to sustain price levels. Furthermore, the U.S. is

imporng 35% less crude due to domesc hydrolic fracturing capabili-

es, a move which lowers global demand, and consequenally price.

Pruning Assets and Capex Reducons May Increase Earnings

In response to falling brent and crude oil prices, North American

Integrated O&G companies such as Exxon Mobil have looked at re-

ducons in capital expenditure to improve earnings and increase free

cash ow. Integrated companies can increase protability by pruning

assets that have shown weak performance relave to extracon

costs; and instead, focus on maximizing renary margins as raw ma-

terial costs are at a mul-year low. Companies such as Shell have also

sold subsidiary units to smaller, more specialized peers and private

equity funds to raise capital for dividends and share repurchases.


13/16

FUNDAMENTALSVALUATION METHODOLOGIES

INDUSTRY SPECIFIC MULTIPLES

EV/EBITDAXEBITDAX, not EBITDA: The “X” stands for Exploraon Expense, and we add back it to EBITDA when

working with E&P companies because of the issue with successful eorts vs. full cost accounng

above: we’re normalizing the metric.

Enterprise Value/Daily Producon: EV/BOE/D

Also referred to as price per owing barrel, this is a key metric used by many oil and gas analysts.

This takes the enterprise value (market cap + debt – cash) and divides it by barrels of oil equivalent

per day (BOE/D). All oil and gas companies report producon in BOE. If the mulple is high com-

pared to the rm’s peers, it is trading at a premium, and if the mulple is low amongst its peers it is

trading at a discount.

Enterprise Value/Proven + Probable Reserves: EV/2P

This easily calculated metric, which requires no esmates or assumpons, helps analysts understandhow well resources will support the company’s operaons. Generally the EV/2P rao should not be

used in isolaon, as not all reserves are the same. However, this mulple can sll be an important

metric to use to evaluate the valuaon of acquiring properes when lile is known about the cash

ow. Reserves can be proven, probable or possible reserves.

Price to Cash Flow: P/CF

Oil and gas analysts will oen use the price-to-cash-ow per share mulple. A few advantages of the

price–to-cash-ow mulple is that in contrast to earnings, book value and the P/E rao, cash ow is

harder to manipulate. Earnings can always be tweaked by aggressive accounng, and book value is

calculated using subjecve depreciaon methods. One disadvantage is that while easily calculated,

it can be a lile misleading if there is a case of above average or below average nancial leverage.

Enterprise Value/Debt-Adjusted Cash Flow: EV/DACF

The capital structure of oil and gas rms can be dramacally dierent. Firms with higher levels of

debt, or more leverage, will show a beer P/CF rao, which is why the EV/DACF mulple is pre-

ferred.

DCPU: Distributed Cash Per Unit

Useful in measuring stakeholder value created


14/16

Assume that the company adds nothing to its reserves and that it produces 100% of its reserves

unl it runs out of natural resources completely.

1. Set Up Columns to Track Each Commodity, Revenue, Expenses, and Cash Flows.

You want to track the beginning and ending reserves each year, the annual producon volume,

and the average price for each commodity; typically you use the same low/mid/high price cases

that you used in the company’s operang model.

2. Assume Producon Decline Rates and Calculate Revenue Unl the Reserves Run Out

Depending on the company’s previous history, you might assume a decline rate of 5-10% per year

– potenally more or less depending on how mature it is.

In each year, you assume that you produce either the producon volume of that year or the

remaining reserves – whichever number is lower.

Then, you’d mulply the producon volume mes the average price each year for all commodi-es to get the revenue by year.

3. Project (Some) Expenses

You focus on Producon and Development expenses here, both of which may be linked to the

company’s producon in the rst place.

You don’t assume anything for Exploraon since you’re pretending that the company nds noth-

ing and dwindles to $0 in the future, and you leave out items like corporate overhead and SG&A

because we’re valuing the company on an asset-level.

4. Calculate and Discount Aer-Tax Cash Flows

Subtract the expenses from the revenue each year and then mulply by (1 – Tax Rate) to calculate

the aer-tax cash ows.

Then, you add up and discount everything based on the standard 10% discount rate used in theOil & Gas industry (no WACC or Cost of Equity here).

5. Add in Other Assets and Business Segments

For example, if the company has undeveloped land or if it has midstream or downstream opera-

ons, you might esmate the value of those based on an EBITDA mulple (or $ per acre for land)

and add them in.

You add all those up to arrive at Enterprise Value, then back into Equity Value the normal way,

and calculate the company’s Implied Share Price by dividing by the diluted shares outstanding.

So that’s a Net Asset Value model in a nutshell. It is widely used in oil, gas, mining, and other

commodity-based sectors, and it oen produces more accurate results than the standard DCF

analysis.

Sum of the PartsFor cases where the company is highly diversied – think Exxon Mobil – you need to value its

upstream, midstream, downstream, and other segments separately and add up the values at the

end.

So you might, for example, use tradional mulples like EBITDA for the midstream and down-

stream segments, and then use Proved Reserves or Producon mulples for the upstream seg-

ment and add them together to arrive at the nal value.

Or you might use NAV for upstream and a DCF for other segments and add those up. ReportReferences

Bloomberg,Investopedia,Wikipedia,IBISWorld,CapitalIQ,ThomsonOne,YahooFinance

THE NAV MODEL


15/16

ANALYST TEAM

www.queenscapital.ca

Kelvin Li Evan Burns Kelvin Li Evan Bu

Hans Shen Stephen Peng Hans Shen

Stephen Pe


16/16

PUBLICATION LEAD

Jung-Yung J. Chang Jung-Yung J. Chang

Report #1 - Oil and Gas FINAL

Documents

Transcript of Report #1 - Oil and Gas FINAL