top 10 prime oil stock takeover candidates
TRANSCRIPT
Over a barrel
Oil stocks both small and large have been badly beaten
down by weak oil prices. Because of this, many oil
companies are selling for a discounted value of their
proved oil reserves compared to other peers.
Source: Marathon Oil
Over a barrel
In many cases, it would be in an oil company’s best interest to
sell itself to the highest bidder. That’s what Rosetta Resources
did as it recently agreed to a sale to Noble Energy. That deal was for a 28% premium to the
company’s market value, which boosted its Enterprise Value-to-Proved Reserves to $13.65 per barrel of oil equivalent, or BOE.
Source: Marathon Oil
Over a barrel
With that deal in mind, here’s a list of the 10 oil stocks with the lowest Enterprise Value-
to-Proved Oil Reserves according to S&P Capital
IQ data. These oil companies could unlock a lot of value by
agreeing to a merger at a premium to the market’s
value for their oil reserves. Source: ConocoPhillips
Oasis Petroleum (NYSE: OAS)
• Enterprise Value: $4.9 billion
• Proved Reserves: 272 million BOE
• EV-to-Proved oil reserves: $20.20/barrel
• EV-to-Proved reserves: $17.87/BOE
Bakken-focused oil company
Whiting Petroleum (NYSE: WLL)
• Enterprise Value: $12.4 billion
• Proved Reserves: 780 million BOE
• EV-to-Proved oil reserves: $19.20/ barrel
• EV-to-Proved reserves: $15.86/BOE
Rockies-focused oil company
Northern Oil & Gas (NYSEMKT: NOG)
• Enterprise Value: $1.3 billion
• Proved Reserves: 100.7 million BOE
• EV-to-Proved oil reserves: $14.60/barrel
• EV-to-Proved reserves: $12.73/BOE
Bakken Shale-focused, non-operated oil company
ConocoPhillips (NYSE: COP)
• Enterprise Value: $100.8 billion
• Proved Reserves: 8.9 billion BOE
• EV-to-Proved oil reserves: $21.6/barrel
• EV-to-Proved reserves: $11.33/BOE
Globally diversified energy company
Marathon Oil (NYSE: MRO)
• Enterprise Value: $24.4 billion
• Proved Reserves: 2.2 billion BOE
• EV-to-Proved oil reserves: $15.9/barrel
• EV-to-Proved reserves: $11.11/BOE
Globally diversified energy company
Abraxas Petroleum (NASDAQ:AXAS)
• Enterprise Value: $461.8 million
• Proved Reserves: 42.4 million BOE
• EV-to-Proved oil reserves: $14.70/barrel
• EV-to-Proved reserves: $10.89/BOE
Bakken, Eagle Ford, and Permian Basin oil company
Bill Barrett Corp (NYSE: BBG)
• Enterprise Value: $1.1 billion
• Proved Reserves: 122 million BOE
• EV-to-Proved oil reserves: $13.90/barrel
• EV-to-Proved reserves: $9.20/BOE
Rockies-focused oil development company
Approach Resources (NASDAQ: AREX)
• Enterprise Value: $771.6 million
• Proved Reserves: 146 million BOE
• EV-to-Proved oil reserves: $14.00/barrel
• EV-to-Proved reserves: $5.29/BOE
Permian Basin-focused shale oil company.
Denbury Resources (NYSE: DNR)
• Enterprise Value: $6.3 billion
• Proved Reserves: 1.2 billion BOE
• EV-to-Proved oil reserves: $17.50/barrel
• EV-to-Proved reserves: $5.25/BOE
Enhance oil recovery specialist
California Resources (NYSE: CRC)
• Enterprise Value: $3.1 billion
• Proved Reserves: 768 million BOE
• EV-to-Proved oil reserves: $17.40/barrel
• EV-to-Proved reserves: $4.00/BOE
California-focused oil and gas company
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