Investing in the NYSE integrated oil & gas companies
Hazut, Einav (2014)
Hazut, Einav
Arcada - Nylands svenska yrkeshögskola
2014
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2014092114096
https://urn.fi/URN:NBN:fi:amk-2014092114096
Tiivistelmä
The following thesis analyzes the profitability of investing in the integrated oil & gas
companies in the New York Stock Exchange. The analysis includes data from the three leading
competing companies in that industry and their performance compared with the industry
average. The investment is restricted only to shares and does apply to other channels of
investment such as bonds. The theory analyzes the profitability of the investment using
financial ratios, return on investment and weighted average cost of capital combined with the
economic value added. The calculation and theory are examined alongside a forecast of supply
& demand for oil & natural gas.
The results reveal that Exxon is more profitable and efficient than Chevron however, Exxon’s
liquidity level are extremely low. Furthermore, Chevron has better investor ratios and is able to
please its investors better than Exxon.
Therefore the author concludes that in her opinion investment in Chevron’s stocks in the NYSE
is a more profitable investment than its two examined competitors; BP & Exxon.
companies in the New York Stock Exchange. The analysis includes data from the three leading
competing companies in that industry and their performance compared with the industry
average. The investment is restricted only to shares and does apply to other channels of
investment such as bonds. The theory analyzes the profitability of the investment using
financial ratios, return on investment and weighted average cost of capital combined with the
economic value added. The calculation and theory are examined alongside a forecast of supply
& demand for oil & natural gas.
The results reveal that Exxon is more profitable and efficient than Chevron however, Exxon’s
liquidity level are extremely low. Furthermore, Chevron has better investor ratios and is able to
please its investors better than Exxon.
Therefore the author concludes that in her opinion investment in Chevron’s stocks in the NYSE
is a more profitable investment than its two examined competitors; BP & Exxon.