Saw this Telegraph Questor Share tip for BG last week - www.telegraph.co.uk: Questor share tip: Gas trends change and BG Group looks good value.
Interesting that the International Energy Agency gets its second mention in a week.
Interesting to me as I had never heard of them before.
In this case the IEA have reversed an earlier view that there would be a global gas glut until 2020 and moved towards a view that the over supply is already dissipating, hmmm.
Good news for BG though, and gives the company and its February full year results presentation (where it made reference to supply constraints) an increased credibility (www.dailymail.co.uk: BG Group gushing as gas prices lift earnings).
At the time, the company cited maturing gas fields and increasing environmental regulation, and increasing demand from China and India, as key drivers and that overall demand for gas would increase by 75% by 2020. In the same presentation, Chief Executive Frank Chapman also acknowledged the IEA's view (at the time) that there would be a gas glut until 2020. Frank Chapman's response being that he didn't know where it was going to come from.
The Questor tip also pointed to BG's increasing oil production with "Morgan Stanley calculated that 64pc of production from BG will be oil by 2020."
There was also a cherry to top things off (or should that be an old chestnut), with Royal Dutch Shell and China's CNOOC being speculated as possible bidders for BG.
Management seems capable, a successful strategy is in place and it has proven its expertise in exploration for oil and gas.
The company also deals in a commodity that is very much in demand as well as having significant reserve assets that would complement any of the major gas/oil producers portfolios whilst also being of a suitable size at £43bn (big enough to add value but not too big to acquire).
One to keep hold onto then.
Article links:
- www.telegraph.co.uk: Questor share tip: Gas trends change and BG Group looks good value
- www.dailymail.co.uk: BG Group gushing as gas prices lift earnings
Links to BG Group website: 2010 Fourth Qtr and Full Year Results (plus webcast)
- www.bg-group.com: 2010 Fourth Quarter and Full Year Results
Interesting that the International Energy Agency gets its second mention in a week.
Interesting to me as I had never heard of them before.
In this case the IEA have reversed an earlier view that there would be a global gas glut until 2020 and moved towards a view that the over supply is already dissipating, hmmm.
Good news for BG though, and gives the company and its February full year results presentation (where it made reference to supply constraints) an increased credibility (www.dailymail.co.uk: BG Group gushing as gas prices lift earnings).
At the time, the company cited maturing gas fields and increasing environmental regulation, and increasing demand from China and India, as key drivers and that overall demand for gas would increase by 75% by 2020. In the same presentation, Chief Executive Frank Chapman also acknowledged the IEA's view (at the time) that there would be a gas glut until 2020. Frank Chapman's response being that he didn't know where it was going to come from.
The Questor tip also pointed to BG's increasing oil production with "Morgan Stanley calculated that 64pc of production from BG will be oil by 2020."
There was also a cherry to top things off (or should that be an old chestnut), with Royal Dutch Shell and China's CNOOC being speculated as possible bidders for BG.
Management seems capable, a successful strategy is in place and it has proven its expertise in exploration for oil and gas.
The company also deals in a commodity that is very much in demand as well as having significant reserve assets that would complement any of the major gas/oil producers portfolios whilst also being of a suitable size at £43bn (big enough to add value but not too big to acquire).
One to keep hold onto then.
Article links:
- www.telegraph.co.uk: Questor share tip: Gas trends change and BG Group looks good value
- www.dailymail.co.uk: BG Group gushing as gas prices lift earnings
Links to BG Group website: 2010 Fourth Qtr and Full Year Results (plus webcast)
- www.bg-group.com: 2010 Fourth Quarter and Full Year Results
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→BG Update: Questor Share Tip.
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