Oil prices have been depressed for two years, and the falling price has pushed some oil stocks below $1 per share, making them penny stocks. However, the International Energy Agency has predicted an end to the world oil oversupply in 2017, and OPEC has entered into two agreements to limit production levels. These developments have pushed oil above $50 per barrel.
The Energy Information Administration (EIA) has issued a forecast for oil prices of $52 to $53 per barrel throughout 2017. If that prediction holds true, some beaten-down oil stocks may rise above the $1-per-share mark.
The fact that these low-priced energy stocks have survived the oil slump may speak to their resilience. They were chosen based on their longevity and potential to profit from higher oil prices, as well as the EIA’s prediction for higher natural gas prices through 2017. All figures are current as of February 27, 2017.
International Financial Reporting Standards (IFRS) provide the basis for financial reporting to the capital markets in an increasing number of countries around the world. Over 100 countries either use or are adopting IFRS.
One of the major challenges of any reporting framework is how best to implement it in the context of a specific company or industry. IFRS is a principles based framework and short on industry guidance. PwC looks at how IFRS is applied in practice by oil and gas companies. This publication identifies the issues that are unique to the oil and gas companies industry and includes a number of real life examples to demonstrate how companies are responding to the various accounting challenges along the value chain.
We look at some of main developments in this context with a selection of reporting topics that are of most practical relevance to oil and gas companies’ activities. The new standards on joint arrangements, consolidated financial statements and disclosure of interests in other entities will be of particular interest to companies in the oil and gas sector.
The debate about specific guidance for exploration, evaluation, development and production of oil and gas continues. This publication does not describe all IFRSs applicable to oil and gas entities but focuses on those areas that are of most interest to companies in the sector.
Helping oil and gas companies with Finance functions
PwC’s Finance Advisory services supports our clients with structuring their finance functions such that they drive real, demonstrable value for the business in a controlled and efficient manner. This process entails that:
- All the low added-value activities are standardised and delivered at lowest cost through efficient shared service structures
- Finance in the Embedded Businesses (i.e. so called ‘retained finance teams’) is focused on maximising business support
- Finance is a chosen place to work by staff (i.e. people really want to be a part of Finance)
- Data and systems are standardised, automated and provide a robust control framework
- Finance operates to a top quartile level by comparison to peer organisations
We have a global community of experienced Finance professionals who provide a wide range of Finance operational, risk and functional advisory services to our oil and gas clients.
Jonah Energy LLC has signed a definitive agreement to acquire natural gas and oil producing properties in the Jonah and Pinedale fields and surrounding area from LINN Energy Inc. for approximately …