Investing in the NYSE integrated oil & gas companies

Abstract

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.