Reserves uncertainty proving detrimental to E&P stocks

Reserves reclassifications concern investors because the market has sold off shares of companies reporting negative reserves revisions, Houston-based Simmons & Co. International Ltd. said."The residual uncertainty associated with the reclassification of reserves has had a detrimental influence on exploration and production stocks. It remains to be seen whether this angst ultimately prompts the market to assign a higher equity risk premium to E&P shares longer term," analyst W. Mark Meyer said in a Feb. 25 research note.Meanwhile, of those oil and gas companies that reduced their reserves estimates, the shares of most of them remained 10% below preannouncement trading levels for several da...

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.


Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.

Stay Connected