Even though oil is trading at a ratio approximately 25.7 times higher than the energy equivalent 6:1 ratio, the market is still showing natural gas operators love – predominantly Marcellus Shale producers.

As of October 2012, EnerCom’s Marcellus Shale peer group was trading at an average 2012 P/CFPS of 11.6 times. This compares to its GOM and Bakken shale peer group trading averages of 3.3 times and 6.2 times respectively. Click here for the chart. Why the generous multiple? A few notable reasons: low finding and development costs and huge inv...


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