Environment Forum

Shale Gas Valuation Index

Following is the Thomson Reuters North America Shale Gas Valuation Index, based on closing share prices from Feb. 18.

The data comes from StarMine, a Thomson Reuters company, using the 12-month forward SmartEstimate, a measure that selects estimates from only the most accurate analysts.

StarMine Intrinsic Value is a variation on the dividend-discount model methodology that adjusts for biases uncovered in analyst forecasts. EV/EBITDA Index average 7.3 Range Resources Corp <RRC> 13.0 CNX Gas Corp <CXG> 10.2 EQT Corp <EQT> 9.3 Exco Resources Inc <XCO> 9.3 Southwestern Energy Co <SWN> 9.0 Petrohawk Energy Corp <HK.N> 8.4 Carrizo Oil And Gas Inc <CRZO> 8.3 Cabot Oil & Gas Corp <COG> 7.9 Quicksilver Resources Inc <KWK> 7.8 Forest Oil Corp <FST> 7.7 Encana Corp <ECA> 7.7 Goodrich Petroleum Corp <GDP> 7.4 Encore Acquisition Co <EAC> 6.9 Chesapeake Energy Corp <CHK> 6.4 Anadarko Petroleum Corp <APC> 6.1 EOG Resources Inc <EOG> 6.0 Devon Energy Corp <DVN> 5.5 Comstock Resources Inc <CRK> 5.5 Newfield Exploration Co <NFX> 5.0 Apache Corp <APA> 4.5 Cimarex Energy Co <XEC> 4.4 Talisman Energy Inc <TLM> 4.0 —————

PRICE/EPS Aggregate 16.3 Range Resources Corp <RRC> 65.5 Comstock Resources <CRK> 42.9 Encore Acquisition Co <EAC> 39.7 Anadarko Petroleum Co <APC> 37.0 Cabot Oil & Gas <COG> 32.0 Petrohawk Energy Corp <HK.N> 30.5 EOG Resources Inc <EOG> 25.7 CNX Gas Corp <CXG> 23.9 Talisman Energy Inc <TLM> 23.6 EQT Corp <EQT> 22.1 Encana Corp <ECA> 21.9 Southwestern Energy Co <SWN> 21.1 Exco Resources Inc <XCO> 18.9 Carrizo Oil And Gas Incorporated <CRZO> 16.8 Quicksilver Resources Inc <KWK> 16.5 Forest Oil Corporation <FST> 12.3 Newfield Exploration Company <NFX> 10.8 Devon Energy Corp <DVN> 10.6 Chesapeake Energy Corp <CHK> 10.0 Apache Corp <APA> 9.8 Cimarex Energy Co <XEC> 8.9 Goodrich Petroleum Corp <GDP> – —————

Shale Gas Valuation Index

Following is the Thomson Reuters North America Shale Gas Valuation Index, based on closing share prices from Feb. 17.

The data comes from StarMine, a Thomson Reuters company, using the 12-month forward SmartEstimate, a measure that selects estimates from only the most accurate analysts.

StarMine Intrinsic Value is a variation on the dividend-discount model methodology that adjusts for biases uncovered in analyst forecasts.

Retailers reject oil sands — a good move?

CANADA BOOMTOWN

Two big U.S. retail chains have turned their back on Canada’s oil sands, a move that was both hailed and derided, split as you might expect along environmental lines.

Whole Foods and Bed Bath and Beyond this week said they were boycotting the Canadian oil sands and they would actively seek alternatives to oil sands fuel for their delivery trucks to reduce their carbon footprints.

The oil sands are the largest source of oil outside of Saudi Arabia, and most of the 1.2 million barrels a day of oil sands-derived crude gets shipped to the United States.

Factbox: Renewable energy targets around the world

(Reuters) – Several countries have introduced subsidies or incentives to encourage clean energy production, such as feed-in tariffs or green certificates. Listed below are countries which have established renewable energy targets from 2013 to 2020.

table

Source: Reuters, Renewable Energy Policy network (www.ren21.net)
(1) See individual EU member state targets here

http://ec.europa.eu/energy/renewables/targets_en.htm)

(2) The Japan target may be subject to change as the Japanese government
plans to submit Climate Change Law to parliament in coming months
(3) In pending climate change legislation, the United States has proposed a
target of 15 pct by 2020. Twenty-nine out of 50 U.S. states have set targets for
minimum amounts of electricity generation from renewable sources, while another
five states have voluntary goals.
(Compiled by Nina Chestney; Editing by Sara Ledwith)

from Tales from the Trail:

“Heroism fatigue”: another hurdle for U.S. climate change action?

GERMANY/Could "heroism fatigue" be yet another bump in the road for any U.S. law to curb climate change? And what is "heroism fatigue" anyway?

To Paul Bledsoe of the bipartisan National Commission on Energy Policy, heroism fatigue is what happens when the Congress has spent most of the year doing something heroic, like trying to hammer out an agreement on healthcare reform, when what lawmakers might rather be doing is naming a new post office. Following one big, gnarly piece of legislation with another -- like a bill to limit climate-warming carbon dioxide -- can seem daunting.

"Especially Democrats want to get  back to some meat-and-potatoes job-creation stuff," Bledsoe says. "They're going to need a little time after healthcare."

from The Great Debate:

Weatherization heats up in 2010

OBAMA/

By John W. Edwards, Jr.

President Barack Obama certainly is walking the walk when it comes to weatherizing America’s homes.

Five billion dollars was included in the economic stimulus legislation for the Weatherization Assistance Program, the federal program started in 1976 to help low-income families.

And more recently the president has proposed a “cash for caulkers” incentive program for homeowners modeled on the successful “cash for clunkers” autos program earlier this year.

What about China?

(Updates with comments from Raymond Pierrehumbert, Knut Alfsen and Kim Carstensen)

HONGKONG-POLLUTION/

The world’s top emitter of greenhouse gases by geographical boundaries is China. A close second is the United States. Between the two great powers, they account for 40 percent of all carbon emissions from burning fossil fuels.

Heading into the United Nations Conference on Climate Change, the pressure was on for China to come up with a real plan for how it would scale back its record emissions.

The silent revolution in energy efficiency

– John Kemp is a Reuters columnist. The views expressed are his own —

John Kemp

Current debates about cutting energy consumption and carbon emissions often carry a strong undercurrent of asceticism.

There is an almost missionary zeal to save the planet by reverting to a simpler and more satisfying past when energy consumption was lower (or at least encourage other people to make necessary sacrifices).

But the post-war experience of the United States and other industrialized economies suggests it is possible to combine rising living standards with the same or lower energy use.

from The Great Debate UK:

Government intervention key to low-carbon economy

Scientists argue that rich nations must make drastic cuts in greenhouse gas emissions to prevent dangerous climate change. The way energy is used, priced and created would have to change in order to institute these cuts.

Ahead of elections in Britain, which must be held before June 2010, Dave Timms of Friends of the Earth shared his thoughts with Reuters on what the group thinks the next government needs to do in order to build a low-carbon economy.

from Tales from the Trail:

Team Obama’s Environmental Irony Tour

OBAMA/Okay, so it's August in Washington. It's hot. Congress has gone home. Even the summer interns are packing up and getting out of town. So it's not surprising that top members of the Obama administration might be ready for a road trip.

That's basically what the White House announced in a statement headlined: "Obama Administration Officials Travel America, Talk Clean Energy Economy." President Obama went to Indiana to announce $2.4 billion in funding for advanced battery and electric drive projects; Energy Secretary Steven Chu headed for Minnesota to look at renewable energy projects and North Carolina to announce a big grant to a lithium battery firm, finishing up the week in Massachusetts to talk about clean energy jobs at Harvard; Interior Secretary Ken Salazar went to a solar panel company in Colorado; EPA Administrator Lisa Jackson was in Florida and Commerce Secretary Gary Locke traveled to Missouri.

ENVIRONMENT-USA/WINDProbably only a crank would wonder just how much greenhouse gas all this official travel spewed into the atmosphere. There's no hybrid Air Force One, after all. But it does seem like an exquisite irony that, with the best of environmental intentions, the Obama team may have stomped all over the United States with a heavy-duty carbon footprint.

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