The Screen
With benchmark crude oil prices down by more than 11 per cent this year, Saudi Arabia announced on Sunday it would curb oil production by one million barrels a day starting July in hopes of providing relief to depressed oil prices. OPEC has now decreased oil production by approximately 4.6 million b/d, or 4.6 per cent of global demand this year.
First, we screen for Canadian-, and U.S.-listed oil, gas and consumable fuels companies with a market capitalization greater than US$1-billion. We then use the StarMine Relative Valuation model to screen for companies with a score greater than 90. The relative valuation model is a percentile ranking of stocks based on price and enterprise value multiples such as price-to-earnings, price-to-cash-flow, price-to-book, and enterprise value-to-EBITDA, with 100 representing the highest rank.