SMID E&Ps
Credit Suisse Sector Review
02 April 2013, 26 pages, 28 exhibits
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Higher Recycle Ratios Point to Operational Efficiency. Within our
coverage universe, we look at cash-on-cash returns by focusing on 3-year
recycle ratios (cash flow per unit divided by unit organic F&D costs) to
determine which producers are efficiently running their operations. REXX,
RRC and ROSE stand out as the companies with recycle ratios meaningfully
higher than the median of 1.6x, while PVA and FST screen as less efficient
with recycle ratios of 0.1x and 0.2x, respectively.
All-In F&D Including Revisions Increases to $23.82 per Boe. For 2012,
we estimate that all-in F&D (including revisions) increased to $23.82 per Boe,
up 34% yr/yr from $17.76 per Boe at YE 2011, while organic F&D (excluding
revisions) increased to $18.31 per Boe, up 44% yr/yr from $12.78 Boe.
Proved undeveloped (PUD) percentages for our coverage universe fell in the
wake of weak natural gas prices to 47% from 53% in 2011.
Future Development Costs. One method of gauging future asset efficiency
are unit future development costs (FDCs), which came in at a median
$19.06 per Boe for 2012 vs. $18.45 per Boe in 2011. REXX, CRK and RRC
have the lowest per unit future development cost at YE 2012, while FST,
EXXI and GPOR have the highest.
Overall F&D Survey. We also provide our analysis on 2012 finding and
development (F&D) costs and reserve replacement (RR) for 65 producers
that we track. |
