Benchmarking the Mid-Cap E&Ps

Wood Mackenzie’s Corporate Resilience and Sustainability Indices (CoRSI) identify three pillars that determine an E&P’s capacity to navigate the challenges and risks facing the industry: financial platform, portfolio and transition. This Insight focuses on the portfolio pillar for a peer group of Mid-Cap E&Ps. In an industry increasingly focused on scale, diversification, longevity and shareholder returns, the Mid-Caps have the most work to ensure long-term viability. Portfolio choices will go a long way to dictating success. But as the most leveraged peer group in our coverage (average gearing 40%), there’s no blank cheque to achieve this. Corporate consolidation will be the primary means for most. In this Insight, we’ll explore the relative strengths and weaknesses of the Mid-Caps’ portfolios and evaluate their long-term outlook.