Below are some highlights from the findings of the IHS Energy 50 and some of the top ranking companies by category.
Little change in combined value of IHS Energy 50
The value of the top 50 energy companies changed little in 2013, tracking more closely the Brent oil price, which declined by 2.7% than the S&P 500, which increased 26%. The combined market capitalisation of 44 returning companies from the 2013 Energy 50 fell by 0.6% compared with a year ago.
Although overall values remained essentially unchanged, some companies recorded stellar performances. Among companies returning to the list, the year’s largest market cap gainer was EOG, which moved from number 33 last year to 27 this year. EOG’s value increase of 40% demonstrates the continuing attraction of liquids rich North American unconventional plays. The value of the two service sector companies on the Energy 50, Halliburton and Schlumbeger, increased by 34% and 29%.
The year’s largest market cap declines were posted by National Oil Companies (NOCs), with the market cap of Ecopetrol and Petrobras declining by 38% and 27%.
NOCs on decline, IOCs variable, depending on strategy
While the combined value of Integrated Oil Companies (IOCs) on the Energy 50 rose by 9% on average in 2013, the combined market value of the top NOCs fell by 15% year over year. Investors became increasingly concerned that these companies’ privileged access to resources is often tied to expectations that they will build value not only for shareholders, but for the parent state and key sectors of the host economy.
Value surges to midstream, service sectors
Midstream companies achieved the strongest combined growth among the segment Top 15 lists, posting a combined market cap increase of 26%. Most of these companies are in North America where the unconventionals revolution created exceptionally profitable opportunities for debottlenecking and arbitrage.
The oilfield service segment also performed strongly, with the combined market cap of the returning Top 15 Oilfield Service Companies increasing by 25%. Ti may be no coincidence that cost inflation has become a rising topic of operator concern.
Two refining universes
Benefitting from the surge of inexpensive domestic crude supply, the five predominantly US refiners among the top 15 Refining and Marketing companies saw an average market cap increase of 29%, compared with an average decline of 10% for the rest of that list.
Top 5 exploration and production
1 – ConocoPhillips
2 – Occidental
3 – EOC Resources
4 – Anadarko
5 – Novatek
Top 5 oilfield and drilling services
1 – Schlumberger
2 – Halliburton
3 – Baker Hughes
4 – Seadrill
5 – Transocean
Top 5 midstream/infrastructure
1 – Enterprise
2 – Kinder Morgan
3 – Enbridge
4 – TransCanada
5 – Energy Transfer Partners
Top 5 refining and marketing
1 – Reliance
2 – Phillips 66
3 – Marathon Petroleum
4 – Valero
6 – Formosa Petrochemicals
Adapted from a report by Claira Lloyd.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/28012014/energy_50_part_2_114/