24 February 2014


Industry sector OIL&GAS.

The consolidated statements of accounts among eleven of major global oil and gas integrated companies collectively account for more than 40% of the entire oil and gas integrated sector market capitalization, with a market value of $1.8 trillion at close of 19th of February 2014. These have been collected and selectively reviewed to speculate about the current market value of this industry, with a specific methodology followed - focusing on operating cash flows, capital expenditures (additions to property, plant and equipment, as well as constructions in progress) and free cash flows. Among other evidence resulting from the analysis, it has emerged that the sum of their operating cash flows almost equals the sum in capital expenditures as of 19th of February 2014. This means, that during last twelve months, no extra-value has been generated by these eleven companies (considered as a whole), to be distributed to the shareholders. In other words, all the “cash” produced during the last year has been used to invest into capital expenditures. DIAWONDS ® believes this industry is currently highly overvạlued. You may find the full report (also in english; currently available only for an italian audience; 50€) @