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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (39125)	9/6/2010 4:28:34 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78628

re MRO >> That's why I hate integrateds.<< it depends on what you pay for the R&M part. MRO's market cap is 28B%, proved reserves are 1.7BOE (60% oil / 40% gas). The crude reserves are worth: 1.7x0.6x15$=15.3B$ gas reserves: 1.6x0.4x6x1.5$=5.76B$ So the reserves along cover 21B$ of MRO's 28B$ EV. For the rest you get a R&M business that is able to generate 1B$ in profit in decent year, an integrated gas business (worth probably 2B$+)plus an oils sand business (no proved reserves were booked in the oils sand segment) plus ancillary assets. This is pretty cheap in my book. I'll take a Refining and marketing asset , especially a best in class one any time if I don't have to pay for it.