New McDep Report out - Februay 1, 2011
CVX & COP top their value list.
Rising Trends for XOM, CVX, and COP
mcdep.com
From the article:"...Summary and Recommendation
Oil production, refined products and overseas natural gas are each contributing increasing earnings and cash flow disclosed in latest results for buy recommendations ExxonMobil (XOM), Chevron (CVX) and ConocoPhillips (COP). In addition to the improved outlook for downstream refining and marketing we noted last week, latest results validated a stronger recovery in overseas natural gas price than we had been projecting, which is particularly important for XOM. Powered by new production in Qatar, XOM’s share of value concentrated on overseas natural gas increases to 18% from 14% (see Table 1 on page 2). We maintain Net Present Value (NPV) at the level to which we raised it at year-end for $100 oil (see Table 2 on page 3). Higher cash flow strengthens support for NPV. The strength is also reflected in lower unlevered cash flow multiples (EV/Ebitda) ranging from 4.3 to 5.8 compared to 4.9 to 6.6 a week ago (see Table 3 on page 4). The attractive valuation ratios are backed up in detail for each of the three U.S. Integrated Producers (see tables Functional Cash Flow and Present Value and Next Twelve Months Operating and Financial Estimates on pages 6-9). Meanwhile, crude oil price, the main indicator for largest share of value for most of our large cap buy recommendations, continues its upward trend (see charts Six-Year Commodity Price Meter below and Six-Year and One-Year Natural Gas and Oil Futures on page 11). Price may be affected by turmoil in Egypt that we hope is resolved to help Egyptians participate fully in global economic growth...."
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XOM, CVX and COP up 5.7%, 7.3% & 8.1% respectively since the report was prepared (2/1/2011). Their corresponding McDep ratio(s) were as follows XOM (.78), CVX (.68) and COP (.68).
finance.yahoo.com
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