The Net Asset Values Of Big Oil: $10-$40 Stress Test

Following last week's research note on the sustainability of Big Oil's dividends, this week analysts at Oppenheimer have put out a research note which looks at the estimated NAV of oil and gas companies, based on proved reserves. This estimated NAV is then compared to current prices to give an over/undervalued result.

The estimates factor in several different pricing scenarios from $10 to $40/b for oil and $0.50 to $2.00/mcf for gas.

I should say that this note was published on 10/05/2015 and based on the price action in the oil sector during the past few days, the figures are likely to be somewhat unreliable. Still, they provide an interesting picture of what's cheap and what's expensive in the oil sector.

Valuing Big Oil

Alongside varied...