There are three clear events happening to oil and gas company valuations currently:
(i) Those that have funding are enjoying higher valuation multiples than those that don't, i.e., the opportunity premium has evaporated due to the current liquidity squeeze for upstream financing;
(ii) Projects are getting funded by, but the sources are becoming increasingly varied; and
(iii) The ESG agenda is starting to wane, with an increased focus on the fact it is a transition, not a switchover.
All of this has resulted in a widening in valuations.
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