25 July 2013: Australia’s top 25 upstream independents experienced a four per cent decrease in their combined market capitalisation over the second quarter of 2013.
According to Deloitte’s June quarter Upstream Independents League Table, compiled from the Australian Stock Exchange’s oil and gas producers sector, combined market capitalisation fell $3.2 billion to $74.1 billion.
Deloitte Corporate Finance Partner Robin Polson said: “The decrease was experienced in an environment of generally stable oil prices and exchange rates.”
“Crude oil, for example, decreased slightly to US$96.56 a barrel during the second quarter, from US$97.23 a barrel."
“The top four companies, however, experienced mixed results. Santos and Oil Search increased their market capitalisation by 0.8 per cent and 4.4 per cent respectively, while both Woodside Petroleum and Origin Energy both lost value.”
Key developments in the June 2013 quarter included:
Sundance Energy’s market capitalisation increased A$104 million (approximately 34 per cent) after the company delivered a strong quarterly operations update. It also successfully completed a $48.1 million placement to professional and sophisticated investors, the proceeds of which will primarily be used to accelerate the development of Sundance’s Eagle Ford assets in Southern Texas and Mississippian/Woodford acreage in Oklahoma in the United States
With all revenues generated in North America, where 78% of assets are held, Neon Energy benefited from the fall in the Australian dollar and saw its market capitalisation increase by $11 million (approximately nine per cent). During the quarter, the company also commenced a joint venture drilling two new wells in Vietnam
Beach Energy’s market capitalisation decreased A$344 million (approximately 19 per cent) following the release of disappointing production and sales results due to major maintenance shutdowns at the company’s Moomba gas processing plant. The company’s share price has, however, recovered in early July trade, closing at A$1.36 on 19 July, on the back of the release of its June monthly drilling report, media reports of an initiative to strengthen its balance sheet further by adding to its existing cash reserves, and the A$ 190 million it received from Chevron in February and speculation that this may be a prelude to takeover activity
Linc Energy’s market capitalisation decreased by A$728.8 million (approximately 63 per cent), with the share price falling after the company announced a planned convertible bond issue. The proceeds will be used to pay down existing debt and strengthen its balance sheet
Maverick Drilling & Exploration’s market capitalisation fell by more than A$123 million (approximately 43 per cent) on the back of poor drilling results, with the share price fall compounded by the stock falling outside of the ASX200.
Moving into the top 25: Neon Energy – see above, up from 27 to 19
Antares – up from 26 to 23
Moving out of the top 25: Nexus Energy – down to 26 from 19
Lonestar Resources – down to 27 from 25
Biggest movers: Blue energy – up 17 places to 46
Jacka Resources – down 26 places to 75
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