| Description |
1 online resource (xii, 447 pages) : illustrations |
| Series |
Knovel Library
|
| Contents |
Machine derived contents note: 1. Introduction 1 -- Oil Prices 3 -- Diminishing Supplies and Increasing Demand 4 -- Mega Mergers 5 -- The Stock Market 7 -- 2. Fundamentals of Valuation 11 -- Market Value 11 -- Fair Market Value 12 -- Technical Analysis 14 -- Dow Theory 14 -- Fundamental Analysis 17 -- The first step-Economic conditions 17 -- The second step-Industry analysis 19 -- The third step-Company analysis 20 -- Asset- vs. Income-Based Techniques 21 -- Asset-based valuation concepts 22 -- Control premium 23 -- Income-based valuation concepts 23 -- Efficient Market Hypothesis 26 -- Random Walk Theory 27 -- Catch-22 27 -- Niels Bohr-Early EMH proponent 28 -- Stock Quotations 29 -- Accounting Value vs. Economic Value 34 -- Future and Present Value Theory 35 -- Future value 36 -- Present value 36 -- Annuities 38 -- Perpetuity 39 -- Assumptions 40 -- Present value tables 43 -- Internal Rate of Return 44 -- Cost of Capital 46 -- Cost of debt 46 -- Cost of preferred stock 46 -- Cost of equity 47 -- Capital asset pricing model 47 -- Summary 51 -- 3. Accounting Systems for Oil and Gas 53 -- Generally Accepted Accounting Principles 53 -- Accounting concepts 54 -- Governance, transparency, and disclosure 58 -- Reserve Recognition Accounting 58 -- FC and SE Accounting 60 -- SE accounting 60 -- FC accounting 61 -- Ceiling Test Limitation 62 -- Book value, SEC value, and FMV of reserves 63 -- Depreciation, depletion, and amortization 67 -- Cost Depletion and Percentage Depletion 67 -- Summary and Key Concepts 69 -- 4. Financial Statement Analysis 71 -- Annual Report 71 -- The Income Statement 71 -- The Balance Sheet 72 -- The Statement of Cash Flows 72 -- Form 10-K 73 -- Form 10-K Oil & Gas Reserves 73 -- Financial Analysis 74 -- Ratio Analysis 82 -- Analytical perspectives 83 -- Ratios 85 -- Liquidity ratios 85 -- Profitability ratios 90 -- Activity ratios 94 -- Dividends 100 -- Valuation ratios 102 -- Energy ratios 108 -- Ratio Roulette 109 -- Cvx 110 -- CVX Highlights 2001 111 -- Summary and Key Concepts 111 -- How much is too much debt? 111 -- 5. Valuation of Common Stock 115 -- Guidelines for Estimating Value 115 -- IRS guidelines 115 -- SEC guidelines 116 -- Book Value 117 -- Book value multiple 118 -- Debt-adjusted book value multiple 120 -- Adjusted book value 120 -- O&G Properties 126 -- Long-term Investment in Stock 127 -- Off-Balance-Sheet Activities Involving the Cost & Equity Methods -- of Accounting 128 -- Consolidation and minority interests 130 -- Off-balance-sheet assets and liabilities 131 -- Long-term leases 131 -- Synthetic leases 132 -- Litigation 134 -- Environmental Liabilities 134 -- Exxon Valdez spill in the Prince William Sound, 1989 135 -- Dismantlement, Removal, and Restoration (DR&R)-Abandonment 136 -- Off-Balance-Sheet Commitments 136 -- Drilling Commitments 137 -- Summary 137 -- Discounted cash flow analysis 145 -- Adjustments 147 -- Net income 148 -- Dd&A 148 -- Deferred taxes 149 -- Extraordinary items 149 -- Other adjustments 149 -- Exploration expenses 150 -- Research and development 150 -- Interest expense 150 -- Free cash flow 151 -- Operating income multiple 157 -- Comparable sales 157 -- Replacement value 160 -- Combined appraisal techniques 160 -- 6. Competitive Comparisons 165 -- Individual Investment 165 -- Institutional Investment 165 -- Employment 166 -- Benchmarking 166 -- M&A Potential 166 -- Identification of Peer Group 167 -- Line of business 167 -- Size 168 -- Market or location 169 -- Other considerations 169 -- Identification of Comparison Criteria 170 -- Study the sector 170 -- Sources of information 170 -- Identify the industry or sector concerns 170 -- Integrated O&G industries 171 -- E&S 174 -- E&P 176 -- Drilling 178 -- Refining and marketing 180 -- Utilities 180 -- 7. Segment Valuation 185 -- Proved Reserves 186 -- Acreage 187 -- Transportation 189 -- Pipelines 190 -- Tankers 192 -- Refineries 194 -- Industry Structure 194 -- Financial Analysis and Evaluation of Refineries 197 -- Nelson Complexity Index 199 -- Refinery value dollars per barrel per stream day 205 -- Valuation of Chevron and Texaco refinery segments 205 -- Marketing Outlets 208 -- Gas stations 208 -- C-stores 209 -- Truck stops and travel plazas 209 -- Hypermarkets 210 -- Marketing Trends 210 -- 8. Value of Reserves-in-the-Ground 215 -- Value of an Oil Discovery 216 -- Value of Producing Oil Reserves 225 -- Value of a Gas Discovery 231 -- 9. Corporate Restructuring 237 -- The Language of Corporate Restructuring 237 -- History 238 -- Merger waves 238 -- M&A driving forces 245 -- Spin-off MLP 249 -- Lbo 252 -- Share Repurchase 253 -- Targeted Stock Restructuring 255 -- Fair Price Requirement 256 -- 10. Legal and Tax Environment for Mergers 257 -- Laws and Regulatory Agencies 257 -- Sherman Antitrust Act of 1890 257 -- Clayton Antitrust Act of 1914 258 -- State antitrust "Blue Sky Laws" and M&A legislation 263 -- FTC Act of 1914 263 -- Securities and Act of 1933 264 -- Securities & Exchange Act of 1934 264 -- The Celler-Kefauver Antimerger Act of 1950 265 -- Uniform Securities Act of 1956-"Blue Sky Laws" 265 -- National Securities Markets Improvement Act of 1996 265 -- The Williams Act 266 -- Hart-Scott-Rodino Act of 1976 268 -- Tax Environment 273 -- Accounting methods 273 -- Pooling of interests 274 -- Purchase method 274 -- The Transaction Structure 277 -- Tax-free transaction 277 -- Types of corporate reorganization 277 -- Mlp 279 -- Sox 282 -- Conflict of interests 282 -- Principal sections of SOX 283 -- Gaap 288 -- 11. Valuation of Bonds and Preferred Stock 293 -- Bonds 293 -- Bond yields 296 -- Bond ratings 297 -- Preferred Stock 300 -- Cumulative preferred stock 302 -- Convertible preferred 302 -- Tax considerations 305 -- Appendix 1: Abbreviations 307 -- Appendix 2: World Energy Statistics 315 -- Appendix 3: Production Statistics for Key Energy States 1989, 1999 317 -- Appendix 4: State Severance and Ad Valorem Taxes 2001 319 -- Appendix 5: Crude Oil & Gas Prices 323 -- Appendix 6: Energy Conversion Factors 325 -- Appendix 7: Present Value of One-time Payment 327 -- Appendix 8: Present Value of an Annuity 329 -- Appendix 9: Natural Gas Products 331 -- Appendix 10: Information Sources 333 -- Appendix 11: Reporting Systems & Statements 335 -- Appendix 12: Enron & SPEs 341 -- Appendix 13: Stock Tables Explained 355 -- Appendix 14: Charts & Technical Analysis 359 -- Appendix 15: Energy Sector P/E Ratios 369 -- Appendix 16: The Reinvestment Assumption 373 -- Appendix 17: Value of Information in the Public Domain 375 -- Appendix 18: Expanded Definitions of Key Terms 395 -- Appendix 19: M&A Jargon 401 -- Glossary 407 -- Index 429 |
| Summary |
Basic principles are widely understood in the financial industry, but the terminology and analytical techniques can vary greatly. This book is written for the nonfinancial shareholders, managers, and oil company employees interested in the forces that influence stock values. The bottom line in any company is expressed in the language of finance. This book explains financial concepts in a nontechnical, practical way so that nonfinancial professionals and others may understand and appreciate this aspect of the business. When the first edition of this book was written, companies disclosed substantially less information than what is available today. This additional information allows a better understanding of the financial status and health of a company. But there is still room for improvement -- Product Description |
| Bibliography |
Includes bibliographical references (p. 392) and index |
| Notes |
Print version record |
| Subject |
Petroleum industry and trade -- Finance
|
|
Petroleum industry and trade -- Management
|
|
Petroleum industry and trade -- Finance.
|
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Petroleum industry and trade -- Management.
|
| Form |
Electronic book
|
| Author |
Johnston, Daniel
|
| LC no. |
2005032647 |
| ISBN |
9781613449301 |
|
1613449305 |
|
