Company total sales 5yr sales growth Ave ROI 5yrs Dividend Valuation( P/E)
PBR $98 billion 30.88% 17% .82% 13.7
STO $95 billion 21.34% 14.3% 2.93% 35
OXY $18 billion 21.2% 18.7% 1.74% 16.4
XOM $ 305 billion 14.11% 23.2% 2.34% 16.8
BP $233 billion 16.85 15% 5.93% 20.1
TOT $191 billion 13.38% 13.6% 5.38% 13.6
CVX $ 168 billion 17.63% 19.7% 3.55% 12.5
COP $154 billion 18.56% 18.56% 3.99% ?
E $140 billion 15.7% 15.6% 5.91% 12.7
PTR $131.8 billion 28.11% 21.1% 3.03% 14.7
ECA $25.4 billion 28.68% 12.2% 2.87% 7.2
Here above is a list of the major and most successful oil companies in the world. PTR , ECA and PBR have had the greatest 5 year sales growth. PBR has found major oil reserves of the coast of Brazil, assuring itself sustainability and growth in the years ahead, though they will come at great developmental cost and risk. I have excluded Gazprom as it focuses primarily in Natural gas and Royal Dutch as it has a return on capital of only 6%.
If we rank the above by the ratio of ( ROI to P/E ) a surrogate measure for best value, we get to rank them by most profit per unit of value . Moreover, if we assume the past performance holds, then the three best ranking are ECA, Chevron, and PTR.
Past performance in difficult to assume given the different proven crude oil reserves positions they hold individually, and that impacts their future performance and valuation . PBR has probably the best future reserves as they develop the large oil fields off the cost of Brazil, though at huge expense and far into the future before any production materializes. ECA with a P/E of 7 looks underpriced, though they have more exposure to natural gas, which is depressed at present, and PTR is a quasi governmental company, hence applying this analysis , CVX is probably the least risky.
Joseph Dirnfeld
Audax Investments
audaxinvestments.wordpress.com/
917 838 3093
305 861 8670
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