US E&P benchmarking study
US E&P benchmark study
June 2012
Table of contents
Study overview
1
Industry backdrop and study highlights
3
Capital expenditures
4
Revenues and results of operations
5
Oil reserves
6
Gas reserves
7
Performance measures Proved reserve acquisition costs, finding and development costs and reserve replacement costs
9
Production replacement rates
10
Production costs
11
Company statistics
12
Peer groups
24
Ernst & Young Americas oil and gas services
25
Study overview
The US E&P benchmark study is a compilation and analysis of certain oil and gas reserve disclosure information as reported by publicly traded companies in their annual reports filed with the United
States (US) Securities and Exchange Commission (SEC). This report presents the US exploration and production (E&P) results for the fiveyear period from 2007 through 2011 for the largest 50 companies based on 2011 end-of-year oil and gas reserve estimates. Activity related to XTO Energy, Inc. (XTO Energy) has also been reflected in this report as described below.
Performance measures
The companies
• Finding and development costs are calculated as unproved property acquisition costs, exploration costs, development costs and identified related asset retirement obligation costs, divided by extensions and discoveries, revisions and improved recovery of proved reserves. The calculation excludes the effect of proved reserves purchased.
The companies included herein account for approximately 98% of total US oil reserves and approximately 65% of total US gas reserves, based on January 1, 2012 reserves estimates published by the
Oil & Gas Journal. Thus, the results of these companies are generally representative of the US E&P industry as a whole. However, it should be noted that results for these companies and for the E&P industry as a whole may be significantly different in other regions of
June 2012
Table of contents
Study overview
1
Industry backdrop and study highlights
3
Capital expenditures
4
Revenues and results of operations
5
Oil reserves
6
Gas reserves
7
Performance measures Proved reserve acquisition costs, finding and development costs and reserve replacement costs
9
Production replacement rates
10
Production costs
11
Company statistics
12
Peer groups
24
Ernst & Young Americas oil and gas services
25
Study overview
The US E&P benchmark study is a compilation and analysis of certain oil and gas reserve disclosure information as reported by publicly traded companies in their annual reports filed with the United
States (US) Securities and Exchange Commission (SEC). This report presents the US exploration and production (E&P) results for the fiveyear period from 2007 through 2011 for the largest 50 companies based on 2011 end-of-year oil and gas reserve estimates. Activity related to XTO Energy, Inc. (XTO Energy) has also been reflected in this report as described below.
Performance measures
The companies
• Finding and development costs are calculated as unproved property acquisition costs, exploration costs, development costs and identified related asset retirement obligation costs, divided by extensions and discoveries, revisions and improved recovery of proved reserves. The calculation excludes the effect of proved reserves purchased.
The companies included herein account for approximately 98% of total US oil reserves and approximately 65% of total US gas reserves, based on January 1, 2012 reserves estimates published by the
Oil & Gas Journal. Thus, the results of these companies are generally representative of the US E&P industry as a whole. However, it should be noted that results for these companies and for the E&P industry as a whole may be significantly different in other regions of