Monday 17 April 2017

Rob Stevens from Richmond Energy Partners (REP) said many firms are in better shape thanks to restructuring efforts, effective cost cutting and lower break-even Brent prices.

But Mr Stevens warned the 30 E&P companies which REP monitors were still valued some way below mid-2014 levels − before the downturn kicked in − due in part to high debt levels and huge impairment charges which continue to show up on income statements.

He also said it was difficult for share prices to pick up once oil prices flatten, because “profit taking” tends to take precedence.

“E&P companies are out of the emergency room,” Mr Stevens said. “The situation is not as bad as in 2016, but they are not out of hospital yet.”

More - https://www.energyvoice.com/marketinfo/136549/ep-c...