If found it's somewhat as you say. With nav, if it's even stated, some companies use an after-tax number, some a pre-tax number (e.g. ATPG). Also, some of these e&p companies only accrue taxes, if that, and don't pay taxes, so I wonder what after-tax nav really means there.
Regarding mmboe and $/boe, there are several factors with the number provided by the company. First, in my looking around, the most concrete number and one frequently provided, is $/boe produced, or some equivalent. And those dollars received are often from oil that's hedged, and so in future $/boe can change very abruptly after the contracted prices expire (and if production expands or contracts). Secondly, there's produced mmboe, proven mmboe, proven+probable mmboe, proven+probable+possible mmboe. Somehow, all that should somehow be considered in a nav calculation.
I am currently researching if I can determine a factor - a constant dollar amount - to attach to each 1mmboe produced by a company. If I were to multiply that number by the number of mmboe's produced, and if that resulting dollar value is greater than enterprise value, I wonder if I can have a bogey that just might be good enough for screening purposes to determine the instantaneous, point-in-time of the value of the company vs. its stock price. |
