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Search results “Mining and oil and gas companies”

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Views: 440994 Oil & Gas Videos

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A short animation explaining how gas is being traditionally extracted. It also contains some information about how the wast energy can be used to charge batteries.
Views: 346804 Alex Mesesan

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A fast paced explanation of how many oil and gas deposits form and how we explore for them.

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When you're valuing an E&P (Exploration & Production) company, the Net Asset Value (NAV) Model is the key methodology. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" UNLIKE in a DCF, where cash flow growth is assumed into infinity, in a NAV model you assume the company's cash flows go to \$0 eventually as it completely produces all of its reserves and has nothing left. A granular NAV model is complex, but it comes down to a 2-step process: Step 1: Model the company's existing production from wells it already has... and assume a decline rate for the annual production each year, also assuming commodity prices to determine revenue, and linking operating expenses to production and calculating cash flow like that. Step 2: Assume the company drills new wells in its PUD (Proved Undeveloped), PROB (Probable), and POSS (Possible) reserves. The second step involves dozens of sub-steps and assumptions, but here we're just going to focus on ONE small part of this process: estimating the decline rate of a new well the company drills. It starts off at a very high production rate, but then declines quickly within even the first year of its useful life - and we need to estimate the decline rates each year to build the rest of the model. You COULD do lots of complicated math, try fitting hyperbolic or exponential functions, run a regression analysis, etc., but we suggest a much simpler approach here: if the company doesn't disclose data on its decline rates for individual wells, find data from another company operating in the same region and fit it to your company's "average" wells. How to Do That: Step 1: Find the company's key data, such as the EUR per well and IP rate per well in the region you're looking at. Step 2: Now, see if the company discloses data on its own decline rates... if so, you're set! If not, or if it's not enough, find another company operating in the region that discloses more data (EQT here), and go to that company's investor presentations to get the numbers. Step 3: In the first year, assume that production is some % of 365 * IP Rate per Well... because there is a huge drop-off in daily production from Month 1 to Month 12 in that first year. EQT's data shows 45%; we assume 60% here since UPL has a slightly flatter decline curve. Step 4: Copy and paste the other company's decline rates into each year of your decline curve. Step 5: Enter the correct formula for calculating annual production each year AFTER the initial year... here: =MIN(AU129*(1+AT130),\$AT\$126-SUM(AU\$129:AU129)) Want to take either Last Year Production * (1 + Decline Rate) (the first part), or the total remaining reserves in this well (the second part). Step 6: Set up Subtotal / Remainder / Total math and ensure that everything is produced. Step 7: "Fit the data" using Goal Seek and the Factor - multiply each decline rate by a certain factor and use Goal Seek (Alt + A + W + G) to solve for the factor that makes the Subtotal equal to the EUR. Step 8: Build in support for a different EUR by scaling the production up or down in the "Total" column. Step 9: Allocate the production to oil vs. gas. vs. NGLs. Step 10: Complete the Subtotal / Remainder / Total math at the bottom. What Next? Next, we'd complete this process for all the wells the company drills in every region, estimate revenue, expenses, and cash flow for each one, and then aggregate the discounted cash flow values in every region across all reserve types... Which brings us closer to the implied NAV per share, which is what the NAV model is really all about. Stay tuned for more!

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The purpose of this model is to convert assumptions about natural resources into a financial model, while valuing a mining asset (NPV and IRR) and assessing its cash flow profile.

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Perdido is the deepest floating oil rig (platform) in the world at a water depth of about 2450 meters operated by the Shell Oil Company in the Gulf of Mexico. The Perdido is located in the Perdido fold belt which is a rich discovery of crude oil and natural gas that lies in water that is nearly 8000 feet deep. The platform's peak production will be 100,000 barrels of oil equivalent per day. At 267 meters, the Perdido is nearly as tall as the Eiffel Tower. An oil rig is a large structure with facilities to drill wells, to extract and process oil and natural gas, and to temporarily store product until it can be brought to shore for refining and marketing. In many cases, the platform contains facilities to house the workforce as well. Perdido Oil Platform https://engineers-channel.blogspot.com/p/perdido-oil-platform.html Troll A Platform http://engineers-channel.blogspot.com/p/troll-platform.html Offshore Oil Drilling History http://engineers-channel.blogspot.com/p/offshore-oil-drilling-history.html Oil History http://engineers-channel.blogspot.com/p/oil-history.html Trans-Alaska Pipeline System http://engineers-channel.blogspot.com/p/trans-alaska-pipeline-system.html Snow White Gas Refinery http://engineers-channel.blogspot.com/p/snow-white-gas-refinery.html Oil Tankers https://engineers-channel.blogspot.com/p/oil-tankers.html The End of Oil https://engineers-channel.blogspot.com/p/the-end-of-oil.html
Views: 6479104 Largest Dams

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Eritrea Gas and oil boom soon..
Views: 34797 Nimrod Tv

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Views: 805650 Oil & Gas Videos

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Changes in the Energy industry, means oil and gas companies need to adjust to a new paradigm to remain competitive and relevant in the future. This video provides a deeper dive into the exploration and production digitization of the oil field. Learn more at https://www.accenture.com/energycofuture
Views: 17342 Accenture

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Amawealth.com has created a database of over 600 mining, oil and gas companies listed on the London, New York, Canadian and Australian stock exchanges. Database provides technical market data, operational information and fundamental analysis for the discerning investor, analyst and researcher.
Views: 168 Amawealth1

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Like and subscribe for more videos The Ministry of Energy has again called for equity participation in the petroleum industry by indigenous Ghanaian companies. A meeting of operators in the oil and gas industry ahead of Ghana's maiden licensing round bid scheduled for October 2018, provided a platform to assure indigenous Ghana companies of preferential treatment in the petroleum industry. WEBSITE - https://www.gbcghanaonline.com Twitter - http://twitter.com/thegbcghana Facebook - http://facebook.com/gbcghana

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Mumbai High (Bombay High) is India's most important Oil Rig. It caught fire in 2006 killing about 40 people. But they built it up again.. Bigger, Better, Safer. Called Mumbai High North (MHN), the main platform is called MNP and this sits on a 30 stories high Steel Structure made of Huge Tubes - about 13,500 Metric Tonnes in weight. The film describes how this gigantic structure is Fabricated in Oman, Transported through Sea and Installed in the Offshore seas of Mumbai by ONGC. The video is a property of our client L&T Ltd and we have developed this video. We have showcased it here only for presenting our skill set.
Views: 671189 Anthelion Technology

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Woodside is a proud Australian oil and gas company with a long history of achievement. We believe that by doing what's right, even when it's not easy, we can perform to our very best. This means living our values every day.
Views: 10005 Woodside Energy

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Views: 60038 Resolution Films

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A Link TV special: The new feature-length documentary Crude Impact directed by James Wood examines how deeply our current existence relies on fossil fuels, and the cost that extracting oil has had on indigenous populations and the environment. Visit www.linktv.org to learn more about a live web chat about the film.

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Let's play Cities Skylines part 2. How to drill for Oil, and make dat sweet Oil industry money. ◢Subscribe!: http://bit.ly/1ycoGsk ◢Facebook - http://fb.me/MassiveNetwork ◢Twitter - http://twitter.com/MassiveNetwork ◢Google+ - http://goo.gl/gEiI5 Massive Network's Cities Skylines Walkthrough & Gameplay is a hybrid! Including a review, in-depth look of Cities Skylines gameplay.
Views: 111376 MassiveG

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Views: 146195 WildFilmsIndia

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Views: 369913 Saudi Aramco

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Natural Gas is a flammable gas, consisting mainly of methane (CH4), occurring in underground reservoirs often with oil. Learn more about natural gas and all types of energy at www.studentenergy.org
Views: 317006 Student Energy

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Views: 143099 CBC News: The National

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More info on the conference visit here - http://events.ethicalcorp.com/risk-management Steven Wilding, director of Ethical Corporation's forthcoming conference on social and environmental risk in oil, gas and mining, discusses some of the latest developments in the industry with Toby Webb
Views: 489 Ethical Corporation

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OpenText Exceed TurboX (ETX) reduces the cost for implementing and maintaining remote access to graphically demanding software solutions on UNIX, Linux and Windows. For exploration and production companies that work with a dispersed workforce of geologists and contractors, working and collaborating on shared data sets can be a challenge. OpenText Exceed TurboX allows internal and external teams to collaborate in real time. This improves productivity, reduces the need to travel, and eliminates the risk of sensitive data being lost. Exceed TurboX is a high-performance remote-access solution that empowers a truly global workforce, providing access to UNIX, and Microsoft Windows desktops and applications through the web or corporate WAN. This improves the reach of your enterprise applications and allows for data center consolidation to reduce costs and increase security. Exceed TurboX offers granular settings for remote file, printing and clipboard access which can make sure no bit of information leaks outside the data center. Many verticals are using Exceed TurboX to deploy their graphically demanding software to their users. Verticals include Electronic Design Automation (EDA), Manufacturing, Architectural Engineering, Oil& Gas, Utilities and many more. Employing a remote access infrastructure and global datacenters enables cost savings with a quick Return on Investment. OpenText Exceed™ TurboX (ETX) provides high-speed access to graphical applications and desktops running on X11 and Windows hosts. ETX provides a central location for IT to securely deploy applications running on a variety of server platforms, including physical workstations and virtualized environments to a managed list of users across the globe. More about OpenText Exceed TurboX: https://www.opentext.com/products-and-solutions/products/specialty-technologies/connectivity/opentext-exceed-turbox Try the OpenText Exceed TurboX online demo: https://www.opentext.com/products-and-solutions/products/specialty-technologies/connectivity/opentext-exceed-turbox/get-the-opentext-exceed-turbox-demo Request the Exceed TurboX trial: https://www.opentext.com/products-and-solutions/products/specialty-technologies/connectivity/opentext-exceed-turbox#form
Views: 592 OpenText

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Stefania Barbaglio from London South East joins us from Capetown, South Africa to provide an update on the Indaba Mining conference and the latest news in the Oil & Gas exploration sector, Diamond companies. “Oil is likely to move to \$60-\$70/barrel this year”, says Barbaglio while discussing the outlook for Oil exploration firms. Tip TV Finance is a daily finance show based in Belgravia, London. Tip TV Finance prides itself on being able to attract the very highest quality guests on the show to talk markets, economics, trading and investing, keeping our audience informed via insightful and actionable infotainment. The Tip TV Daily Finance Show covers all asset classes ranging from currencies (forex), equities, bonds, commodities, futures and options. Guests share their high conviction market opportunities, covering fundamental, technical, inter-market and quantitative analysis, with the aim of demystifying financial markets for viewers at home. See More At: www.tiptv.co.uk Twitter: @OfficialTipTV Facebook: https://www.facebook.com/officialtiptv
Views: 69 Tip TV Finance

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Views: 1398 InvestingNews

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Corporate Social Responsibility News: Canada Holds CSR Meetings for Mining, Oil, and Gas Companies; Feel Good World Donations Top \$1 Million
Views: 312 3BL Media

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Mining and Petroleum companies must implement their National Content Plans satisfactorily. This is from minister for Trade, Commerce and Industry, Richard Maru.
Views: 146 EMTV Online

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This video explain how crude oil was explored, explain the drilling process, transporting crude oil to refinery,distillation process till final product petrol obtained...
Views: 824798 mechanicalengg4u

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KXAN News and host Josh Hinkle explore the week's developments in Texas government and politics, with interviews of elected officials, and political insiders and journalists.
Views: 5307 kxan

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Nigeria may sit atop one of the largest oil reserves in the world, but the majority of the Nigerian people have seen little benefit from the multibillion-dollar industry. The government and global energy companies have been exploiting the resource for years, bringing poverty, pollution, and violence to the Niger Delta. And now the local militias fighting for oil control have made conditions even worse. Caught in the conflict are Nigerian citizens involved in the illegal oil market simply for survival. Oil theft is rampant, and the booming black market has transnational oil and gas consultants concerned about the effects on global oil markets. The government isn't too happy about it either. “All the oil that is sold around here, the government calls illegally refined products,” local oil businessman Don Wizaro told VICE News. And when the Nigerian military raids illegal oil operations, they slash containers, releasing oil into waterways, contaminating what the main source of fishing, agriculture, and drinking water. As the government continues its assault on illegal refineries and barges carrying stolen oil, local militias are retaliating. And one of the most notorious militias is the Niger Delta Avengers. They attack pipelines and infrastructure, significantly affecting both the environment and the economy. VICE correspondent Gianna Toboni heads to the heart of Nigeria's oil production to witness firsthand the fight over the control of oil in the Niger Delta. Subscribe to VICE News here: http://bit.ly/Subscribe-to-VICE-News Check out VICE News for more: http://vicenews.com Follow VICE News here: Facebook: https://www.facebook.com/vicenews Twitter: https://twitter.com/vicenews Tumblr: http://vicenews.tumblr.com/ Instagram: http://instagram.com/vicenews More videos from the VICE network: https://www.fb.com/vicevideo #VICEonHBO
Views: 1796192 VICE News

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In September 2018, 50 representatives from 17 key partner organizations came to our headquarters in Oslo to share ideas and best practices, and discuss priorities for strengthening extractive industry governance. We asked them: what do you think is the number one priority to improve governance in the extractives? Thank you to our friends at Natural Resource Governance Institute, World Bank, Open Government Partnership, OECD, Columbia Center on Sustainable Investment- CCSI, OpenOil and many more.
Views: 256 EITI

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April has been a troublesome month for the energy industry in recent years. Both natural and manmade disasters have caused businesses to examine their responsiveness and proactive risk management strategies and tactics. The latest episode of Deloitte Insights features John Poma, Vice President of Enterprise Risk Management at Alpha Natural Resources, one of the largest coal mining and distributing companies in the United States, Kim Detiveaux, a Director, Deloitte & Touche LLP, who leads ERM services for Energy Sector companies, including Utilities, Oil & Gas, and Mining companies, and Sean O'Grady, moderator. Tune in to learn how an enterprise risk management strategy may help reduce risks.
Views: 3303 Deloitte US

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Saudi Aramco is considering an IPO that could value it at \$2 trillion, roughly four times the size of Apple.

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Book your OWN session with me at: http://btcsessions.ca/ Get some swag: https://teespring.com/stores/btcsessions Check out Bull Bitcoin: https://bullbitcoin.com/ On my recent video to the Bitcoin Rodeo in Edmonton Alberta, I got the chance to chat with Steve Barbour about his company Upstream Data and how they are using Bitcoin mining to help oil and gas companies increase their profits while simultaneously cutting down on emissions and waste. This conversation is a MUST WATCH for those of you based in Alberta working in oil & gas, but also brings up some great talking points around the fallacy that Bitcoin mining is damaging to the environment. Check out Upstream Data's Website: https://upstreamdata.ca/ Steve on Twitter: https://twitter.com/SGBarbour?lang=en Upstream Data on Twitter: https://twitter.com/UpstreamDataInc?lang=en If you value my work and would like to send me a tip, they are always appreciated! BITCOIN 3NZjB2Fkz6FzHtqDsxJEdWVeeFQfSttK9X LIGHTNING https://tippin.me/@BTCsessions PAYNYM +polishedband886
Views: 686 BTC Sessions

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Views: 151948 Seeker

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Tanzania is keen on having pass legislation that will force all mining, oil and gas companies to renegotiate their contracts. The Government wants the country's natural resources to bring more benefits to its people. But private companies say they already pay their fair share of tax. Dan Ashby looks at the proposal. Subscribe to us on YouTube: http://ow.ly/Zvqj30aIsgY Follow us on: Facebook: https://www.facebook.com/cgtnafrica/ Twitter: https://twitter.com/cgtnafrica
Views: 882 CGTN Africa

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Wireless communications are well-suited for the oil and gas industry, especially in remote production facility locations: they meet the requirements of one of the most demanding industries worldwide to help reduce labor costs, increase operating visibility, enhance control and boost efficiency – all contributing to greater profitability. Watch here the video and learn more: http://www.siemens.com/communications-for-oil-gas
Views: 1021979 Siemens

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Northern Minerals & Exploration, Ltd Stock Symbol: NMEX:OTCQB Website: http://northernmineralsexploration.com/ Northern Minerals & Exploration Ltd. is a natural resource E&P Company focused on both domestic and international exploration and development projects. Northern is a publicly traded oil company listed on the NASDAQ OTC:BB exchange under the symbol: NMEX. The Company is currently dedicated to building cash flow from oil and gas production in Texas and exploration for gold on the Winnemucca Mountain Property in Nevada. The Company feels that in these current times of depressed oil commodity prices, now is the prime time to accelerate the growth of NMEX by acquiring producing domestic & international oil & gas assets with upside proven undeveloped (PUD) drilling opportunities. NMEX will continue to execute our growth strategy on two fronts: (1) the acquisition of long-lived, domestic & international oil production, and (2) the exploitation and enhancement of our producing properties through the application of primary, secondary and tertiary (EOR) recovery techniques. The Company is aggressively seeking to acquire assets in: Domestic areas of interest to NMEX: Texas: including Permian Basin Bend Arch Basin Forth Worth Basin Midland Basin Central Basin Platform Eastern Shelf Ozona Arch Val Verde Basin Oklahoma: including Anadarko Basin Arkoma Basin Cherokee Platform, Wichita Uplift, Ardmore Basin, Arbuckle Uplift Ouachita Mountain Uplift. International areas of interest to NMEX: Australia: including Cooper Basin Eromanga Basin Carnarvon Basin Gippsland Basin Perth Basin Bonaparte Basin Browse Basin Officer Basin Canning Basin Georgina Basin Indonesia: including North Sumatra Basin Central Sumatra Basin South Sumatra Basin North West Java Basin North East Java Basin South West Java Basin South East Java Basin South Central Java Basin West Natuna East Natuna North East Kalimantan Basin For more information contact: Northern Minerals & Exploration Ltd. 1301 Avenue M Cisco, Texas USA 76437 Phone: 1-254-442-2627 Website: www.northernmineralsexploration.com Email: [email protected]
Views: 250 Ace Cruz

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Oil Industries are one of the major economy sectors and employed hundreds of thousands of peoples
Views: 1420 Kamelia Nag

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Providing water treatment solutions and industrial services, reclaim byproducts and treat hazardous wastes, Veolia helps the oil and gas industry to reduce their environmental footprint and thus meet the new challenges and environmental issues. “How and why, at a glance”: What Veolia does. A video collection designed to simply explain, in motion graphics, the process and vocation of Veolia's activities. https://www.youtube.com/playlist?list=PL9opkHFYSV4I2ZXENU9CqdJBSmSwfLzCG -------------------------- www.veolia.com -------------------------- 2016 - Veolia communication department Production : Benoit de La Rochefordière ----- Agence Comçi-Comça : Writing : Amélie Blanquet Motion graphics : François Berthemet
Views: 8199 Veolia Group

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Dennis Willard is the Owner and Managing Director of Surface Well Control, an engineering and mechanical consultancy offering a variety of services to the oil and gas companies in Texas. Surface Well Control offers reliable, timely and cost effective solutions in installation, repair, and replacement of surface well systems.
Views: 19 StateBusNetwork

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The Science and Technology Directorate's (S&T) Linking the Oil and Gas Industry to Improve Cybersecurity (LOGIIC) project is an ongoing collaboration of oil and natural gas companies and the DHS S&T. Formed in 2004, this project facilitates cooperative research, development, testing and evaluation procedures to improve cybersecurity in petroleum industry digital control systems. For more information visit the LOGIIC project page. LOGIIC project page: https://www.dhs.gov/science-and-technology/csd-logiic

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Episode 008: The oil & gas industry is looking to use commercial drones to increase access, efficiency and safety during oil rig inspections - a move that is saving companies millions of dollars. In this episode of Aerial Insights, James Harrison, Co-founder & CEO of London-based Sky-Futures, a leader in oil and gas data capture and analysis by commercial drone, joins Airware’s VP of Product and Solutions Don Weigel to talk about how companies in the oil & gas industry are using commercial drones. Full series here: http://www.youtube.com/playlist?list=PLB46bvV5zpJpIaTjkELZh314c-mcuYnYm Listen to the audio podcast version available on ITunes: https://itunes.apple.com/us/podcast/aerial-insights-series-on/id943512882 Commercial drones will give new insights to virtually every industry. This series will introduce you to the ecosystem of companies and leaders at the forefront of commercial drones - a technology that will give us the insight to make better decisions, improve the way we work and better our world. http://www.airware.com/
Views: 13962 Airware

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● Please SUPPORT my work on Patreon: https://bit.ly/2LT6opZ ● Visit my 2ND CHANNEL: https://bit.ly/2ILbyX8 ►Facebook: https://bit.ly/2INA7yt ►Twitter: https://bit.ly/2Lz57nY ►Google+: https://bit.ly/2IPz7dl ✚ Watch my "Old America" PLAYLIST: https://bit.ly/2rOHzmy This 1950 film is a documentary on the history of the oil industry. It shows the oil exploration activities, the drilling for oil, the refining processes and uses of the final products. The film includes general scenes of American life in the 1940's and 50's. Evolution of the Oil Industry | Documentary on the History of American Oil and Petroleum Industry
Views: 96407 The Best Film Archives

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Watch more How to Make Money Fast videos: http://www.howcast.com/videos/421398-How-to-Find-Oil-on-Your-Land Initial searches for oil on land usually require the skills of geologists and geophysicists. These searches are often conducted by small exploration companies called wildcats. Step 1: Look for surface indications of oil Look for obvious signs of oil on the surface of your land. Tip Surface indications might include oil seeps or petroleum residue in soil samples. Step 2: Look for correlations Look for correlations on your land with the sites of other wells, matching fossils, rock properties, and electrical and radioactivity data. These correlations may predict where oil-bearing strata begin on your property. Step 3: Study gravitational variations Study variations in the earth's gravitational field on your land. If very light oil-bearing rocks are found near the surface, the gravitational force they exert will be less than that for heavy rocks. Step 4: Study the magnetic properties Study the magnetic properties of the underlying rocks on the property. Most rocks that contain oil are non-magnetic. Step 5: Study sound transmission Study the way sound travels through the earth on your land. The time it takes sound to travel through underlying rocks is characteristic of the types of rocks involved. Tip Don't forget to acquire the mineral rights on your land if you have not done so already. Doing so will ensure that if you find oil, it's legally yours. Step 6: Drill a small test well Drill a small test well if the results of your studies are promising. Now you can sell your oil-rich land and move to Beverly Hills. Did You Know? John D. Rockefeller founded the Standard Oil Company in 1870, the country's first oil company.
Views: 94647 Howcast

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www.siemens.com/communications-for-oil-gas : Reliable data networks for the oil and gas industry: Siemens brings you the world's most reliable communication solutions for any installation within the oil ad gas industry, fieldproven to last, compliant with the latest standards and with an uncompromising commitment to reliability.
Views: 5222 Siemens

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A company whose principal activities consist of exploration for mineral, oil or gas may not progress to the next stage of development or to a stage where it is able to generate revenue. Other industry specific risks must also be considered. "Due Diligence on Minerals Companies" (19 Mar 2014) Mineral, Oil and Gas companies on SGX are attracting more attention from global investors -- since 2013, listings of such companies have closed with an average premium of 24% on their first trading day. While such returns are impressive, it is still important for prospective and existing investors to conduct due diligence on a company to understand its risks and potentials effectively. Specifically, for mineral companies, due diligence could be even more important due to the complexity of their business and unique risks. Join our speaker Richard Price of Xstract Mining Consultants who will cover an overview of the due diligence on mineral companies and you can gain insights on the essential tools required to analyze mineral companies.
Views: 250 SGXChannel

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In this tutorial, you'll learn how to research, structure, and present an oil & gas stock pitch. More at http://www.mergersandinquisitions.com/oil-gas-stock-pitch/ You'll also learn how it's different from investment recommendations and stock pitches in other industries. We'll use Ultra Petroleum [UPL] as the example company, and present a SHORT recommendation based on a detailed analysis of their filings, investor presentations, and earnings call transcripts, along with a complex Net Asset Value (NAV) Model, based on individual wells drilled in different regions. Table of Contents: 1:19 The Structure of an Oil & Gas Stock Pitch 3:15 Investment Thesis 6:19 Catalysts 10:42 Valuation 13:38 Risk Factors 15:51 Why This Recommendation Was Wrong 19:25 Recap and Summary Investment Thesis Why is the company mis-priced? How does the market view it, and why is everyone else wrong? Here, we cite 3 reasons: 1. The company has overstated its average EUR per well in some regions, which means its reserves may be overstated or otherwise inaccurate. 2. Cutting capital expenditures (D&C Costs) and operating expenses (LOE) over time makes less of an impact on the company's implied value than they claim it does - being a low-cost producer is nice, but even substantial reductions over time don't boost the value by all that much. 3. Drilling in Pennsylvania may be stopped or reduced due to the company's JV partners, and the market hasn't yet factored in the chances of that happening and the impact on the company's implied value. Catalysts A few examples of potential catalysts: Oil & Gas-Specific: Reserve Reports / Drill Results, Well Drilling Schedules / Expanded or Reduced Drilling, Produce / No Produce Decisions, New Technology Deployment to reduce D&C Costs, Improved Well Spacing, Pipeline Developments, Hedging Contract Changes More Generic: Geographic Expansion, Acquisitions or Divestitures, Earnings Announcements, Competitors' Activities, Financing Activities For UPL, we use these 3 catalysts: 1. The close of the \$650 million Uinta Basin acquisition. 2. The release of new reserve reports from the company's existing regions. 3. The possible halt to drilling in the Marcellus shale of Pennsylvania. For each one, we show the implied per share impact on the company based on the NAV model. Valuation We use the NAV model here, lay out our assumptions in the beginning, and then mostly focus on the OUTPUT of the model to avoid pasting in sheets and sheets of Excel. With the NAV Model, you split the company into existing production (PDP and PDNP) and new production (PUD, PROB, and POSS), make "high-level" estimates for the existing production, and assume a decline rate over time. For the others, assume that a certain # of new wells are drilled each year, assume that they start producing at a certain level and then decline to 0 over time, and then project the revenue, expenses, CapEx, and cash flow for each region and reserve type... Finally, you sum up everything at the end. The main point is to show that the assumption we're MOST uncertain of - EUR per well - makes a huge difference on the valuation... ...While other assumptions, such as the D&C Costs and LOE per well, make a smaller difference and so it doesn't matter much even if the company can reduce those costs. Risk Factors You can "reverse" the catalysts and ask, "What happens if this catalyst does NOT happen, or what if the results are different than expected?" Our top risk factors are: 1. The \$650 million Uinta Basin acquisition fails to close. 2. Even if the acquisition does close, initial drilling reports might be positive and indicate higher-than-expected reserve levels. 3. Full drilling continues in the Marcellus shale as natural gas prices recover. 4. The company's improved well spacing pilots prove successful, and it is able to increase its effective EUR per well. So the first 3 are "reversals" of the catalysts, and we therefore also assess the implied per share impact from them. The last risk factor is more of an "X Factor" type of item that might cause the company's reserves to jump up dramatically if executed well. Why This Recommendation Was Wrong First off, gas prices spiked up to very high levels (\$7.00 - \$8.00) due to an unusually cold winter. That killed the "Short" recommendation since all oil & gas companies become more valuable when commodity prices spike up. Next, the company beat revenue and EPS consensus estimates twice in the past 6-7 months after this pitch; equity research analysts also upgraded their ratings on the stock. Finally, the stock had already fallen substantially in the past 2-3 years before this... so our timing wasn't great. How to Avoid Disaster: We recommended setting a buy-stop order at \$23.00 - \$24.00 / share to limit our losses. That would have limited our losses to ~25%.

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A company whose principal activities consist of exploration for mineral, oil or gas may not progress to the next stage of development or to a stage where it is able to generate revenue. Other industry specific risks must also be considered. "Due Diligence on Minerals Companies" (19 Mar 2014) Mineral, Oil and Gas companies on SGX are attracting more attention from global investors -- since 2013, listings of such companies have closed with an average premium of 24% on their first trading day. While such returns are impressive, it is still important for prospective and existing investors to conduct due diligence on a company to understand its risks and potentials effectively. Specifically, for mineral companies, due diligence could be even more important due to the complexity of their business and unique risks. Join our speaker Richard Price of Xstract Mining Consultants who will cover an overview of the due diligence on mineral companies and you can gain insights on the essential tools required to analyze mineral companies
Views: 316 SGXChannel