Table of contents for Introduction to oil company financial analysis / David Johnston & Daniel Johnston.

Bibliographic record and links to related information available from the Library of Congress catalog.

Note: Contents data are machine generated based on pre-publication provided by the publisher. Contents may have variations from the printed book or be incomplete or contain other coding.


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1.	Introduction 	1
	Oil Prices 	3
	Diminishing Supplies and Increasing Demand 	4
	Mega Mergers 	5
	The Stock Market 	7
2.	Fundamentals of Valuation 	11
	Market Value 	11
	Fair Market Value 	12
	Technical Analysis 	14
	Dow Theory 	14
	Fundamental Analysis 	17
		The first step-Economic conditions 	17
		The second step-Industry analysis 	19
		The third step-Company analysis 	20
	Asset- vs. Income-Based Techniques 	21
		Asset-based valuation concepts 	22
		Control premium 	23
		Income-based valuation concepts 	23
	Efficient Market Hypothesis 	26
	Random Walk Theory 	27
		Catch-22 	27
		Niels Bohr-Early EMH proponent 	28
	Stock Quotations 	29
	Accounting Value vs. Economic Value 	34
	Future and Present Value Theory 	35
		Future value 	36
		Present value 	36
		Annuities 	38
		Perpetuity 	39
		Assumptions 	40
		Present value tables 	43
	Internal Rate of Return 	44
	Cost of Capital 	46
		Cost of debt 	46
		Cost of preferred stock 	46
		Cost of equity 	47
		Capital asset pricing model 	47
	Summary 	51
3.	Accounting Systems for Oil and Gas 	53
	Generally Accepted Accounting Principles 	53
		Accounting concepts 	54
		Governance, transparency, and disclosure 	58
	Reserve Recognition Accounting 	58
	FC and SE Accounting 	60
		SE accounting 	60
		FC accounting 	61
	Ceiling Test Limitation 	62
		Book value, SEC value, and FMV of reserves 	63
		Depreciation, depletion, and amortization 	67
	Cost Depletion and Percentage Depletion 	67
	Summary and Key Concepts 	69
4.	Financial Statement Analysis 	71
	Annual Report 	71
		The Income Statement 	71
		The Balance Sheet 	72
		The Statement of Cash Flows 	72
	Form 10-K 	73
		Form 10-K Oil & Gas Reserves 	73
		Financial Analysis 	74
	Ratio Analysis 	82
		Analytical perspectives 	83
	Ratios 	85
		Liquidity ratios 	85
		Profitability ratios 	90
		Activity ratios 	94
		Dividends 	100
		Valuation ratios 	102
		Energy ratios 	108
	Ratio Roulette 	109
		CVX 	110
	CVX Highlights 2001 	111
	Summary and Key Concepts 	111
		How much is too much debt? 	111
5.	Valuation of Common Stock 	115
	Guidelines for Estimating Value 	115
		IRS guidelines 	115
		SEC guidelines 	116
	Book Value 	117
		Book value multiple 	118
		Debt-adjusted book value multiple 	120
		Adjusted book value 	120
	O&G Properties 	126
	Long-term Investment in Stock 	127
	
Off-Balance-Sheet Activities Involving the Cost & Equity Methods 
of Accounting 	128
		Consolidation and minority interests 	130
		Off-balance-sheet assets and liabilities 	131
		Long-term leases 	131
		Synthetic leases 	132
	Litigation 	134
	Environmental Liabilities 	134
		Exxon Valdez spill in the Prince William Sound, 1989	135
	Dismantlement, Removal, and Restoration (DR&R)-Abandonment 	136
	Off-Balance-Sheet Commitments 	136
	Drilling Commitments 	137
		Summary 	137
		Discounted cash flow analysis 	145
	Adjustments 	147
		Net income 	148
		DD&A 	148
		Deferred taxes 	149
		Extraordinary items 	149
		Other adjustments 	149
		Exploration expenses 	150
		Research and development 	150
		Interest expense 	150
		Free cash flow 	151
		Operating income multiple 	157
		Comparable sales 	157
		Replacement value 	160
		Combined appraisal techniques 	160
6.	Competitive Comparisons 	165
	Individual Investment 	165
	Institutional Investment 	165
	Employment 	166
	Benchmarking 	166
	M&A Potential 	166
	Identification of Peer Group 	167
		Line of business 	167
		Size 	168
		Market or location 	169
		Other considerations 	169
	Identification of Comparison Criteria 	170
		Study the sector 	170
		Sources of information 	170
		Identify the industry or sector concerns 	170
		Integrated O&G industries 	171
		E&S 	174
		E&P 	176
		Drilling 	178
		Refining and marketing 	180
		Utilities	180
7.	Segment Valuation 	185
	Proved Reserves 	186
		Acreage 	187
	Transportation 	189
		Pipelines 	190
		Tankers 	192
	Refineries 	194
		Industry Structure 	194
		Financial Analysis and Evaluation of Refineries 	197
		Nelson Complexity Index 	199
		Refinery value dollars per barrel per stream day 	205
		Valuation of Chevron and Texaco refinery segments 	205
	Marketing Outlets 	208
		Gas stations 	208
		C-stores 	209
		Truck stops and travel plazas 	209
		Hypermarkets 	210
		Marketing Trends 	210
8.	Value of Reserves-in-the-Ground 	215
	Value of an Oil Discovery 	216
	Value of Producing Oil Reserves 	225
	Value of a Gas Discovery 	231
9.	Corporate Restructuring 	237
	The Language of Corporate Restructuring 	237
	History 	238
		Merger waves 	238
		M&A driving forces 	245
	Spin-off MLP 	249
	LBO 	252
	Share Repurchase 	253
	Targeted Stock Restructuring 	255
	Fair Price Requirement 	256
10.	Legal and Tax Environment for Mergers 	257
	Laws and Regulatory Agencies 	257
		Sherman Antitrust Act of 1890 	257
		Clayton Antitrust Act of 1914 	258
		State antitrust "Blue Sky Laws" and M&A legislation 	263
		FTC Act of 1914 	263
		Securities and Act of 1933 	264
		Securities & Exchange Act of 1934 	264
		The Celler-Kefauver Antimerger Act of 1950 	265
		Uniform Securities Act of 1956-"Blue Sky Laws" 	265
		National Securities Markets Improvement Act of 1996 	265
		The Williams Act 	266
		Hart-Scott-Rodino Act of 1976 	268
	Tax Environment 	273
		Accounting methods 	273
		Pooling of interests 	274
		Purchase method 	274
	The Transaction Structure 	277
		Tax-free transaction 	277
		Types of corporate reorganization 	277
		MLP 	279
	SOX 	282
		Conflict of interests 	282
		Principal sections of SOX	283
	GAAP 	288
11.	Valuation of Bonds and Preferred Stock 	293
	Bonds 	293
		Bond yields 	296
		Bond ratings 	297
	Preferred Stock 	300
		Cumulative preferred stock 	302
		Convertible preferred 	302
		Tax considerations 	305
Appendix 1: Abbreviations 	307
Appendix 2: World Energy Statistics 	315
Appendix 3: Production Statistics for Key Energy States 1989, 1999 	317
Appendix 4: State Severance and Ad Valorem Taxes 2001 	319
Appendix 5: Crude Oil & Gas Prices 	323
Appendix 6: Energy Conversion Factors 	325
Appendix 7: Present Value of One-time Payment 	327
Appendix 8: Present Value of an Annuity 	329
Appendix 9: Natural Gas Products 	331
Appendix 10: Information Sources 	333
Appendix 11: Reporting Systems & Statements 	335
Appendix 12: Enron & SPEs 	341
Appendix 13: Stock Tables Explained 	355
Appendix 14: Charts & Technical Analysis 	359
Appendix 15: Energy Sector P/E Ratios 	369
Appendix 16: The Reinvestment Assumption 	373
Appendix 17: Value of Information in the Public Domain 	375
Appendix 18: Expanded Definitions of Key Terms 	395
Appendix 19: M&A Jargon 	401
Glossary 	407
Index 	429

Library of Congress Subject Headings for this publication:

Petroleum industry and trade -- Finance.
Petroleum industry and trade -- Management.