EPL:
Benchmark Multiples
March 1, 2012 |
Vanguard:
Yield Comparisons
February 16, 2012 |
GeoMet:
$/Mcf daily, $/Mcf
March 9, 2012 |
Vantage Drilling:
Offshore Drillers
March 9, 2012 |
Energy Partners Ltd. is a shallow water GOM E&P. EPL closed March 29 at $16.62 per share. Slide above shows, as of February 13, 2012, EPL traded at 0.7X EV/PV10 -- versus Peer avg. of 1.3X. On EV/2011 Ebitda(x), EPL trades at 3.6X vs. Peer's 5.0X. Peer group includes ATP, McMoran, Stone Energy and W&T Offshore. EPL is oil- weighted with high margins; has a conservative balance sheet and a share buyback program in place.
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Vanguard Natural Resources is in the MLP subsector of E&P and closed March 29 at $27.57 per share with a 8.50% yield. MLPs provide investors with yield and other benefits. (thesis in full presentation). The slide above shows VNR's value proposition. With a 66% liquids mix, VNR should trade in line with similarly oily peers. VNR boasts a peer leading 38% distribution growth -- which warrants a premium valuation. MLP yields range from 4.4 to 9.5%. |
GeoMet is a small cap, pure conventional gas producer. Assets are current production of 44 MMcf/d, 198 Bcf reserves, 95% proved developed. Slide above shows some solid comparative valuation metrics on three key benchmarks -- (1) EV/Mcf daily production - avg. $10,000, (2) EV/Mcf proved reserves - avg. $2.00, and (3) EV/LTM Ebitda - avg. ~ 8X. Peers are CRK, PQ, CHK, GMXR, GDP, SWN, EQT, PETD and RRC. GMET trades at a 50% discounts to Peers. |
Vantage Drilling is an offshore drilling contractor. VTG has an EV of ~$1.6B and a contract backlog of $3B. VTG closed March 29 at $1.62 per share. For value benchmarks, the slide above shows the offshore drilling group now trading at 7.8X EV/Ebitda vs. historical 11.6X. VTG's implied values based on 6.5X ranges from $1.72 to $3.96/share. On Price/Book, the group trades at 1.4X, vs. VTG's .6X. Based on VTG's analysis, the company has significant upside.
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