Analyzing the assets of the world’s leading public oil and gas corporations

2020 ◽  
Vol 19 (2) ◽  
pp. 359-373
Author(s):  
O.V. Shimko
Keyword(s):  
Statistical Analysis ◽  
Public Sector ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Annual Reports ◽  
Economic Activities ◽  
Public Companies ◽  
Gas Industry ◽  
The Public ◽  
Oil And Gas Companies

Subject. The article analyzes assets of the largest public companies operating in the oil and gas industry from 2006 to 2018, like ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, Devon Energy, Anadarko Petroleum, PAO Gazprom, PAO NK Rosneft, PAO LUKOIL, and others. Objectives. The aim is to make a comprehensive statistical analysis of changes in absolute values and the structure of assets in the public sector of the oil and gas industry. Methods. The study employs methods of statistical analysis and generalization of materials of official annual reports based on the results of financial and economic activities of the largest public oil and gas corporations. Results. Using the comprehensive analysis of balance sheets of 25 oil and gas companies, I determine changes in the size and structure of assets in the public sector of the industry, and establish the main factors that contributed to this transformation. Conclusions. The findings revealed an increase in the book value of assets in the majority of leading public oil and gas companies. Large mergers and acquisitions and agreements for new field developments also contributed to the increase. The study established that the protracted industry crisis resulted in reducing the proportion of current assets in order to release funds for revenue increase. That was why oil and gas companies sought to accelerate the collection of receivables, primarily by means of trade component. It was also determined that they channeled a part of funds thus collected to short-term financial investments.

scholarly journals The Foreign Practice of Large Merger & Acquisitions in the Public Sector of the Oil and Gas Industry

2020 ◽  
Vol 25 (1) ◽  
pp. 39-52
Author(s):  
O.V. Shimko
Keyword(s):  
Public Sector ◽  
Oil And Gas ◽  
Oil Prices ◽  
Oil And Gas Industry ◽  
Annual Reports ◽  
Gas Industry ◽  
Share Capital ◽  
Market Capitalization ◽  
The Public ◽  
Control Premium

Subject. The article analyzes 12 major M&A deals in the public sector of the oil and gas industry in 2000–2019. Industry indicators are measured on the basis of data from ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum, Devon Energy, Anadarko Petroleum, EOG Resources, Apache, Marathon Oil, Imperial Oil, Suncor Energy, Husky Energy, Canadian Natural Resources, Royal Dutch Shell, BP, TOTAL, Eni, Equinor (Statoil), PetroChina, Sinopec, CNOOC, Petrobras, Gasprom, Rosneft Oil Company and LUKOIL. Objectives. I study on what terms M&A are concluded in the public sector of the oil industry and analyze the approval and changes in the current premium for control over the ratio of share capital to market capitalization. The article also evaluates how the above deals influenced the market capitalization of companies. Methods. The study employs methods of statistical analysis and summarizing official annual reports on financial and business performance and news releases of major State-owned oil and gas corporations. Results. Having analyzed 12 major M&A in the public sector of the oil and gas industry comprehensively, I traced trends in terms on which such deals are concluded and determined their consequences. Conclusions and Relevance. In the public sector of the oil and gas industry, M&A are found to depend on capitalization, but also sometimes refer to the difference between the market value of assets and liabilities. In the industry, share capital control premium is noted to grow, thus exceeding half of capitalization. Therefore, the least acceptable factors include a combination of high oil prices, commensuration of companies’ capitalization, compensation for share capital and high control premium. On the contrary, market capitalization significantly improved in case of deals implying the compensation with stocks, which took placed during low oil prices.

Analyzing the figures of consolidated statement of cash flows of the world's biggest publicly traded oil and gas corporations

2020 ◽  
Vol 19 (6) ◽  
pp. 1101-1120
Author(s):  
O.V. Shimko
Keyword(s):  
Public Sector ◽  
Cash Flow ◽  
Oil And Gas ◽  
Cash Flows ◽  
Annual Reports ◽  
Capital Expenditures ◽  
Publicly Traded ◽  
The Public ◽  
Statement Of Cash Flows ◽  
Oil And Gas Companies

Subject. The article investigates key figures disclosed in consolidated cash flow statements of 25 leading publicly traded oil and gas companies from 2006 to 2018. Objectives. The focus is on determining the current level of values of the main components of consolidated statement of cash flows prepared by leading publicly traded oil and gas companies, identifying key trends within the studied period and factors that led to any transformation. Methods. The study draws on methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated cash flow statements. Results. The comprehensive analysis of annual reports of 25 oil and gas companies enabled to determine changes in the key figures and their relation in the structure of consolidated cash flow statements in the public sector of the industry. It also established main factors that contributed to the changes. Conclusions. In the period under study, I revealed an increase in cash from operating activities; established that capital expenditures in the public sector of the industry show an overall upward trend and depend on the level of oil prices. The analysis demonstrated that even integrated companies’ upstream segment prevail in the capital expenditures structure. The study also unveiled an increase in dividend payments, which, most of the time, exceeded free cash flows thus increasing the debt burden.

scholarly journals Corporate Environmental Disclosures of Oil and Gas Companies in India: An Analysis of Executives’ Perceptions

2021 ◽  
Vol 16 (3) ◽  
pp. 861-879
Author(s):  
Kishore Kanti Majumdar ◽  
Shuchi Pahuja
Keyword(s):  
Value Chain ◽  
Oil And Gas ◽  
Environmental Issues ◽  
Oil And Gas Industry ◽  
Environmental Indicators ◽  
Annual Reports ◽  
Gas Industry ◽  
Sustainability Disclosure ◽  
Environmental Disclosures ◽  
Oil And Gas Companies

Environmental and sustainability issues have assumed significance, leading to social and legal pressures on the companies across the world to take steps to reduce and prevent adverse impact of their activities on the environment and to disclose this information to the concerned stakeholders. The present study aims at investigating the perceptions of executives from 26 listed Indian oil and gas companies on Corporate Environment Disclosures (CEDs)in the annual reports using a structured questionnaire.The questionnaire was constructed on the basis of eleven environmental indicators provided in international oil and gas industry guidelines for voluntary sustainability reporting framework. An attempt was made to determine whether the extent and type of environmental disclosures have correlation with executives’ position in the organization, their knowledge about the annual reports, their stock holdings in the company and the value stream to which the companies belonged. It was found thatthe responding executives were well aware of the environmental issues associated with activities across the value chain in the oil and gas industry. They agreed that these issues are material and must be disclosed in the annual reports, but had different perceptions on the importance of four environmental issues given in the questionnaire for disclosure in the reports. A significant statistical relationship was found between perceived corporate environmental disclosure index (PCEDI) and respondents’ positions in the company and their knowledge on the annual reports. It is suggested that a greater role to knowledgeable senior executives at key positions should be assigned to deal with sustainability disclosure affairs.

Using a Risk-Based Approach in Preparation of Corporate Sustainability Reporting by Oil and Gas Companies

Auditor ◽  
2021 ◽  
pp. 46-53
Author(s):  
Thi Lok Doan
Keyword(s):  
Sustainable Development ◽  
Oil And Gas ◽  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Oil And Gas Industry ◽  
Public Companies ◽  
Gas Industry ◽  
Corporate Reporting ◽  
Oil And Gas Companies

The article presents the author’s approach to the formation of corporate reporting of public companies using the example of the oil and gas industry. The key risks of sustainable development are disclosed that correspond to the interests of various significant groups of the company’s stakeholders. The approbation results of a typical corporate reporting model for oil and gas companies in the Petrolimex report (Vietnam) are presented.

scholarly journals Ethical And Environmental Disclosures: An Analysis Of The Oil And Gas Industry

2012 ◽  
Vol 1 (2) ◽  
pp. 43-50
Author(s):  
Violet C. Rogers ◽  
Jack R. Ethridge ◽  
Treba A. Marsh ◽  
Jessica Lott
Keyword(s):  
Risk Factors ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Fortune 500 ◽  
The Other ◽  
Annual Reports ◽  
Gas Industry ◽  
Other Hand ◽  
Environmental Disclosures ◽  
Oil And Gas Companies

This study investigates the similarities of ethical and environmental disclosures, as well as risk factors contained within annual reports for the reporting year 2009. The data were collected from Fortune 500 oil and gas company annual reports. Findings include: 1) an emphasis on environmental, financial, nonfinancial and ethical disclosures and 2) similar reported risks for all companies investigated. The findings illustrate that many of the studied oil and gas companies have similar disclosures but, on the other hand, are situation specific to particular company and location.

PUBLIC ENVIRONMENTAL REPORTING FOR THE OIL AND GAS INDUSTRY

1999 ◽  
Vol 39 (1) ◽  
pp. 622
Author(s):  
R.A.D. Wright
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Environmental Reporting ◽  
Gas Industry ◽  
Oil And Gas Exploration ◽  
The Public ◽  
High Profile ◽  
Exploration And Production ◽  
Royal Dutch Shell ◽  
Oil And Gas Companies

Acceptance by governments and the public is crucially important for high profile oil and gas exploration and production companies. Many people are pre-disposed against such companies because the environmental and social impacts of their activities are perceived to outweigh the benefits. Leading multi-nationals such as the Royal Dutch/Shell Group have seen the benefits of a recent concerted effort to engage their stakeholders. Shell and other multi-nationals are using public environmental reporting as a means of better communicating their performance. Public environmental reporting has been slow to be adopted in Australia but there may be advantages for oil and gas companies in Australia to be seen to be leaders in this field rather than laggards, particularly with the advent of compulsory public reporting as required by the National Pollutant Inventory.

Analyzing the business and financial performance indicators of the world's leading public oil and gas corporations

2020 ◽  
Vol 13 (4) ◽  
pp. 448-479
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Negative Impact ◽  
Raw Materials ◽  
Stock Exchange ◽  
Operating Performance ◽  
Oil And Gas Industry ◽  
Annual Reports ◽  
Gas Industry ◽  
Economic Analyses ◽  
Oil And Gas Companies

Subject. This article explores the financial, stock-exchange and operating performance, as well as the financial and economic analysis ratios of the twenty five leading public oil and gas companies between 2006 and 2018. Objectives. The article aims to identify key trends in the changes in financial, stock-exchange and operating performance, as well as the analysis ratios of the largest public oil and gas companies, and identify the factors that have caused these changes. Methods. For the study, I used comparative, and financial and economic analyses, and generalization. Results. Based on a comprehensive analysis of the twenty five oil and gas companies' annual reports, the article identifies trends in the changes in financial, stock-exchange and operating performance in the industry's public sector, and establishes the main factors that affected these changes. Conclusions. Despite the growth of raw materials production, the stock segment of the oil and gas industry shows a decrease in profitability. This has a negative impact on the market attractiveness of the oil and gas sector.

Analyzing the liquidity ratios of the world's leading public oil and gas corporations

2020 ◽  
Vol 26 (7) ◽  
pp. 1571-1589 ◽  
Author(s):  
O.V. Shimko
Keyword(s):  
Public Sector ◽  
Oil And Gas ◽  
Comprehensive Analysis ◽  
Annual Reports ◽  
Main Factors ◽  
Economic Analyses ◽  
Oil And Gas Companies

Subject. This article explores the key liquidity figures of the twenty five largest public oil and gas companies between 2006 and 2018. Objectives. The article aims to determine the current values of the key liquidity figures of the largest public oil and gas companies, identify key trends in their changes within the study period, and identify the factors that have caused these changes. Methods. For the study, I used comparative, and financial and economic analyses, and generalization. Results. Based on a comprehensive analysis of the twenty five oil and gas companies' annual reports, the article identifies trends in the changes in the key liquidity indexes in the industry's public sector, and establishes the main factors that affected these changes. Conclusions and Relevance. The largest public oil and gas companies are able to maintain their own liquidity in times of crisis, even. The industry pays the most attention to increasing the instant liquidity ratios. The results of the study can be used to evaluate, forecast, and develop measures to enhance the liquidity of public oil and gas companies.

EBITDA and DACF multipliers as an indicator of investment attractiveness of domestic vertically integrated companies

2021 ◽  
Vol 20 (4) ◽  
pp. 718-752
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Oil And Gas Industry ◽  
Financial Economic ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Debt Burden ◽  
Fixed Assets ◽  
Settlement Agreements ◽  
Oil And Gas Companies

Subject. The article addresses the EV/EBITDA and EV/DACF ratios of the twenty five largest public oil and gas corporations from 2008 to 2018. Objectives. The purpose is to identify key trends in the value of EV/EBITDA and EV/DACF ratios of biggest public oil and gas corporations, determine factors resulted in the changes over the studied period, and establish the applicability of these multipliers for assessing the business value within the industry. Methods. I apply methods of comparative and financial-economic analysis, and generalization of consolidated financial statements data. Results. The study revealed that EV/EBITDA and EV/DACF multiples are acceptable for valuing oil and gas companies. The EV level depends on profitability, proved reserves, and a country factor. It is required to adjust EBITDA for information on impairment, revaluation and write-off for assets that are reported separately from depreciation, depletion and amortization costs, as well as for income or expenses arising after the sale of fixed assets and as a result of effective court decisions or settlement agreements. It is advisable to adjust DACF for income, expenses and changes in assets and liabilities, which are caused by events that are unusual for oil and gas companies. Conclusions. The application of EV/EBITDA and EV/DACF multiples requires a detailed analysis and, if necessary, adjustments of their constituent components. However, they are quite relevant in the context of declining profitability and growing debt burden in the stock exchange sector of the global oil and gas industry.

Mining the air: Political ecologies of the circular carbon economy

2021 ◽  
pp. 251484862110614
Author(s):  
Holly Jean Buck
Keyword(s):  
Fossil Fuels ◽  
Oil And Gas ◽  
New Technologies ◽  
Oil And Gas Industry ◽  
Carbon Utilization ◽  
Gas Industry ◽  
The Public ◽  
Fossil Carbon ◽  
Political Ecologies ◽  
Carbon Economy

Can fossil-based fuels become carbon neutral or carbon negative? The oil and gas industry is facing pressure to decarbonize, and new technologies are allowing companies and experts to imagine lower-carbon fossil fuels as part of a circular carbon economy. This paper draws on interviews with experts, ethnographic observations at carbontech and carbon management events, and interviews with members of the public along a suggested CO2 pipeline route from Iowa to Texas, to explore: What is driving the sociotechnical imaginary of circular fossil carbon among experts, and what are its prospects? How do people living in the landscapes that are expected to provide carbon utilization and removal services understand their desirability and workability? First, the paper examines a contradiction in views of carbon professionals: while experts understand the scale of infrastructure, energy, and capital required to build a circular carbon economy, they face constraints in advocating for policies commensurate with this scale, though they have developed strategies for managing this disconnect. Second, the paper describes views from the land in the central US, surfacing questions about the sustainability of new technologies, the prospect of carbon dioxide pipelines, and the way circular carbon industries could intersect trends of decline in small rural towns. Experts often fail to consider local priorities and expertise, and people in working landscapes may not see the priorities and plans of experts, constituting a “double unseeing.” Robust energy democracy involves not just resistance to dominant imaginaries of circular carbon, but articulation of alternatives. New forms of expert and community collaboration will be key to transcending this double unseeing and furthering energy democracy.

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