MARKET COMMENT Shares of Bakken Producers Outpace Rivals in US E&P Space

摘要

Investors' preference for liquids-focused companies in the US E&P sector has been firmly established in recent years, with gas-weighted firms instead owing periodic share price strength to the view that trading multiples can fall too low despite natural gas' persistent price discount to crude oil, condensate and natural gas liquids. Within the liquids space, investors at times have demonstrated heightened preferences for shares of companies operating in certain unconventional plays. While 2013 was undoubtedly a strong one for companies operating in the Texas' Eagle Ford and Permian Basin, this year investor sentiment has shifted toward firms with strong positions in the North Dakota's Bakken/Three Forks play, data compiled by EI Finance show. An analysis of 33 US E&Ps shows Bakken-focused firms leading the group, with an average share price gain of 20% year-to-date.