It's easy to come up with good reasons to steer clear of Russian
equities. The Russian government has shown itself perfectly willing to
play fast and loose with the rule of law, corruption is still an endemic
problem, and the notion of shareholder rights can be pretty iffy.
Even
so, I find that some of best investment returns have come from places
where the "conventional thinking" was much too bearish, and so I think
it may be with Russia and its second-largest oil producer Lukoil (LUKOY.PK).
Although Lukoil does need to bring new fields into production to offset
declines in its Western Siberia fields, those developments are underway
and the company could surprise to the upside with long-term oil
production. With only a 3.5x multiple to 2014 EBITDA supporting a price
target 30% above today's price and a 5%+ dividend, Lukoil appears to be
meaningfully undervalued even relative to the "Russia discount".
Please read more here:
From Russia With No Love, Lukoil Trading At A Very Low Multiple
Showing posts with label Tullow. Show all posts
Showing posts with label Tullow. Show all posts
Monday, September 9, 2013
Wednesday, May 4, 2011
Investopedia: Anadarko's Balance Paying Off
In the energy sector, investors never want the same thing for long. Oil is hot until it isn't again; foreign reserves are a great growth opportunity until local governments want to revisit the deals; and offshore is the last great opportunity to build reserves until somebody screws it up for everybody. For investors who don't want to try to play that game, Anadarko (NYSE: APC) is a good balanced play with solid exposure to emerging shales, oil-rich offshore deposits, and high-potential overseas reserves.
Good Cost Control in Q1
First quarter results for Anadarko were really solid, due in large part to good cost control. Production jumped more than 13% on a sequential basis, with most of the growth in natural gas and natural gas liquids (though oil was up 9% sequentially). Pricing was also solid, and that blended into 21% sequential revenue growth. (For more, see Oil And Gas Industry Primer.)
On the cost side of the ledger, Anadarko saw production expenses fall 3% sequentially. On a per barrel basis, cash costs dropped about 8%, with operating costs down almost 12% and DD&A expenses rising 2%. Results were definitely helped by the company's drilling success and that may not be sustainable. Likewise, production costs could be more problematic as the company expands its shale and offshore operations - companies like Halliburton (NYSE:HAL), Schulmberger (NYSE:SLB) and Transocean (NYSE:RIG) are all looking to make their own growth targets on those markets.
To read the full article at Investopedia, click the link:
ttp://stocks.investopedia.
Good Cost Control in Q1
First quarter results for Anadarko were really solid, due in large part to good cost control. Production jumped more than 13% on a sequential basis, with most of the growth in natural gas and natural gas liquids (though oil was up 9% sequentially). Pricing was also solid, and that blended into 21% sequential revenue growth. (For more, see Oil And Gas Industry Primer.)
On the cost side of the ledger, Anadarko saw production expenses fall 3% sequentially. On a per barrel basis, cash costs dropped about 8%, with operating costs down almost 12% and DD&A expenses rising 2%. Results were definitely helped by the company's drilling success and that may not be sustainable. Likewise, production costs could be more problematic as the company expands its shale and offshore operations - companies like Halliburton (NYSE:HAL), Schulmberger (NYSE:SLB) and Transocean (NYSE:RIG) are all looking to make their own growth targets on those markets.
To read the full article at Investopedia, click the link:
ttp://stocks.investopedia.
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