The Changes In Equity Valuations of Oil And Gas Companies From Growth To Value

Chawla, Abir

Publication

The Changes In Equity Valuations of Oil And Gas Companies From Growth To Value

Chawla, Abir

Date

2022

Additional date(s)

5/19/2022

Abstract

The oil and gas industry has had a period of continuous change during the past 10-15 years. It began with the shale revolution and culminated with the COVID-19 pandemic and the effect it had on the health of the oil and gas industry. This, combined with the energy transition, has changed how investors interact with oil and gas stocks. This paper studies whether there is empirical evidence to suggest that the oil and gas stocks have shifted from a growth to a value proposition based on a statistical analysis of ten upstream companies in The United States of America. The paper finds that there is statistical evidence to suggest that the stocks have transitioned to value in recent times.