The Rising Influence of Rising Affluence

[mr_o]

Permian Basin EV/EBITA company ratios

We could argue within the permian if the Midland or Delaware is more prolific, but regardless those two basins garner the most attention. A look at the cash flow metrics of the companies with tier 1 acreage: The number columns represent 2015 EV/EBITA and 2016 EV/EBITA respectively.


APA - 6.3x 5.8x
CPE - 8.0x 6.9x
CXO - 9.9x 10.1x
DVN - 5.7x 7.8x
FANG - 13.4x 14.5x
ECA - 6.7x 5.3x
EOG - 12.3x 11.3x
OXY - 11.7x 9.9x
PE - 18.8x 11.6x
PXD - 13.7 11.8


The ratios are not a perfect comparison, but in a sense do show the current valuations of these companies. ECA is my largest energy position.