Has the Australian Oil and Gas Exploration and Production Industry valuation changed over the past few years?

Investors are more pessimistic on the industry, indicating that they anticipate long-term growth rates will be lower than they have historically. The industry is trading at a PE ratio of 10.6x which is lower than its 3-year average PE of 16.8x.

How does Australian Oil and Gas Exploration and Production compare with similar industries?

There is insufficient data on the sub-industries of this industry.

Australian (ASX) Oil and Gas Exploration and Production Industry Analysis

Date	Market Cap	Revenue	Earnings	PE
Sat, 28 May 2022	AU$67.8b	AU$19.3b	AU$3.8b	10.6x
Mon, 25 Apr 2022	AU$71.3b	AU$19.0b	AU$3.8b	11.4x
Wed, 23 Mar 2022	AU$78.2b	AU$20.1b	AU$3.9b	12.3x
Fri, 18 Feb 2022	AU$70.6b	AU$20.3b	AU$4.1b	17.9x
Sun, 16 Jan 2022	AU$66.9b	AU$14.9b	AU$1.2b	27.5x
Tue, 14 Dec 2021	AU$53.6b	AU$15.0b	AU$1.2b	24.9x
Thu, 11 Nov 2021	AU$55.4b	AU$14.7b	AU$1.2b	25.2x
Sat, 09 Oct 2021	AU$60.5b	AU$14.8b	AU$1.2b	27.1x
Mon, 06 Sep 2021	AU$48.5b	AU$14.2b	AU$1.0b	23.8x
Wed, 04 Aug 2021	AU$51.3b	AU$14.2b	AU$1.0b	22.9x
Sat, 08 May 2021	AU$52.1b	AU$13.3b	-AU$2,717,573,416.29	16.4x
Tue, 09 Feb 2021	AU$52.9b	AU$12.5b	-AU$6,478,108,143.63	10x
Mon, 02 Nov 2020	AU$38.1b	AU$14.5b	-AU$6,549,647,955.50	16.5x
Thu, 06 Aug 2020	AU$42.4b	AU$16.2b	-AU$6,254,419,565.34	13.8x
Sun, 10 May 2020	AU$43.9b	AU$18.9b	-AU$2,266,310,919.40	9.5x
Sat, 01 Feb 2020	AU$72.4b	AU$17.5b	AU$2.2b	11.8x
Tue, 05 Nov 2019	AU$67.8b	AU$18.4b	AU$3.2b	16.9x
Fri, 09 Aug 2019	AU$67.6b	AU$18.1b	AU$4.1b	17.9x


AU Market	-1.30%
Energy	1.54%
Oil and Gas	1.56%
Oil and Gas Exploration and Production	2.92%
Oil and Gas Refining and Marketing	0.75%
Integrated Oil and Gas	0%
Coal and Fuels	-0.73%
Oil and Gas Storage and Transportation	-2.90%

Company	Last Price	7D	1Y	Valuation
WDS Woodside Energy Group	AU$30.14	4.8% +AU$1.4b	36.3%	PS10.7x
STO Santos	AU$8.24	2.0% +AU$525.8m	19.8%	PS30.1x
KAR Karoon Energy	AU$2.07	10.1% +AU$105.9m	69.7%	PS2.5x
BPT Beach Energy	AU$1.64	1.9% +AU$68.4m	28.6%	PS9.3x
HZN Horizon Oil	AU$0.15	19.2% +AU$39.5m	72.2%	PS15.8x

May 19

Empire Energy Group Limited Announces That It Is Completing Preparations for the Hydraulic Stimulation and Extended Production Test of Carpentaria-2H

Empire Energy Group Limited announced that it is completing preparations for the hydraulic stimulation and extended production test of Carpentaria-2H. Hydraulic stimulation of C-2H is expected to commence around the end of June 2022. Civils works for hydraulic stimulation have been completed, and mobilisation of equipment is underway. Baseline water sampling of the shallow aquifers as required under NT environmental approvals is also complete. Delivery of some fracture stimulation chemicals had been delayed due to unprecedented global supply chain disruptions but are now en route to Australia and expected to arrive in mid-June. C-2H has a 1,345 metre horizontal section drilled and cased within the Velkerri Formation B Shale, 1,250 metre of which is accessible to hydraulic stimulation. Each hydraulic stimulation stage is expected to be 50 metres long, resulting in a program of up to 25 stages. Empire will utilise several hydraulic stimulation fluid mixes, including slickwater, high viscosity friction reducer, and crosslinked gel to assess which design results in the best production performance. Each fluid type has a dedicated perforation design and pumping strategy. It is likely, given the different hydraulic stimulation designs in C-2H, that there will varying flow rates between fracture stages. The technical data acquired at C-2H will assist Empire with future well completion and hydraulic stimulation design to maximise production in future wells. Basin specific processes refined in the appraisal and development phases in shale plays such as the Beetaloo have been shown to increase well productivity over time. Empire is adopting the best global practices matured in the United States shale revolution to the Beetaloo. Once commenced, hydraulic stimulation is expected to take 15 to 20 days. Flow back of C-2H will commence immediately following hydraulic stimulation. Stimulation water is expected to dominate initial flow back volumes as C-2H cleans up prior to commencement of the main phase of the EPT. This initial flow back period is anticipated to last approximately one month. Empire has regulatory approval to undertake an EPT for up to 90 days. The hydraulic stimulation and production testing at C-2H will seek to improve stimulation fluid selection, perforation, and pumping strategy, and help refine the horizontal target window. It will also provide an early production type curve for development planning, a better understanding of gas composition and enhance Beetaloo specific completion designs. The work at C-2H aligns with Empire's rapid commercialisation strategy to deliver gas volumes into existing infrastructure. Beetaloo Cooperative Drilling Program Empire has received $1.82 million in cash (excluding GST), under the Australian Government's Beetaloo Cooperative Drilling Program. The funds received represent reimbursement of past capital expenditures and will be applied to the forthcoming C-2H stimulation and EPT. Further cash receipts are expected to be received as Empire's work program activities are progressed under its grant agreements with the Australian Government, including for some work that has already been completed. US Operations Update Empire's US gas production assets continue to benefit from higher gas prices in the United States. The current NYMEX Henry Hub spot price is >USD 8.30 /mcf. The higher gas price environment has allowed Empire to layer additional hedging via USD 7.50 /MMBtu fixed price swaps for 25,000 /MMBtu per month for the period 1 June 2022 to 28 February 2023. Empire continues to maintain exposure to spot gas prices through put options which provide upside gas price exposure while ensuring downside price protection and unhedged production volumes. Empire's US net gas production averages 140,000 mcf per month over the course of the year. The all-in sustaining break-even cash cost of Empire's US assets including corporate overheads and distribution royalties, differentials to NYMEX Henry Hub benchmark and deferred hedging premiums is typically USD 3.00 – USD 3.50 /mcf. In its Short-term Energy Outlook released 10 May 2022, the US Energy Information Administration forecast Henry Hub to average USD 8.59 /MMBtu for H2 2022. The EIA expects gas prices to be supported by lower-than-average gas in storage levels over the northern summer and strong LNG export demand.

Australian (ASX) Oil and Gas Exploration and Production Industry Analysis

Industry Valuation and Performance

Industry Comparison

Top Stock Gainers and Losers

Latest News

STX

Price target increased to AU$0.42

STO

Independent Non-Executive Director recently bought AU$101k worth of stock

HZN

Horizon Oil Limited Announces WZ12-8E Production and Operations Update

IVZ

Invictus Energy Limited announced that it expects to receive AUD 12.005233 million in funding

CE1

Calima Energy Limited Intends to Commence a Half Yearly Dividend Program, Beginning the Second Half of 2022

MAY

Melbana Energy Limited Updates on Two Well Exploration Drilling Program in Block 9 Contract Area, Onshore Cuba

GGE

Grand Gulf Energy Ltd Announces Helium 37 Times Above Background After Drilling Salt Seal

BPT

Beach Energy Limited Appoints Morné Engelbrecht as Chief Executive Officer

EEG

Empire Energy Group Limited Announces That It Is Completing Preparations for the Hydraulic Stimulation and Extended Production Test of Carpentaria-2H

COE

Cooper Energy Limited Revises Production Guidance for the Fiscal Year 2022

KAR

Karoon Energy Ltd Announces Commencement of Bauna Intervention Campaign

88E

88 Energy Limited to Report That Slope Fan Set and Basin Floor Fan Play Fairways on Its Project Icewine Acreage Is Now Complete

WDS

Industry Analysts Just Upgraded Their Woodside Petroleum Ltd (ASX:WPL) Revenue Forecasts By 10%

NWE

Norwest Energy NL, Annual General Meeting, Jun 07, 2022

CVN

Price target decreased to AU$0.38

COI

Price target increased to AU$0.21