Sunil Soares CEO YDC | Max Moeller Analyst YDC
September 20, 2022
The value of exploration data at U.S. Oil & Gas Exploration & Production companies is in the range of 1.02-1.91% of Enterprise Value. The valuation methodology is based entirely on exploration data relating to the increase in proved reserves of Barrels of Oil Equivalent (BOE) from the U.S. Energy Information Administration in 2019.
For example, the DMI™ Index for OXY is shown here.
A higher DMI index is generally preferable across companies and industries. By way of reference, internet companies have a higher DMI Index because most of their enterprise value is derived from data. For example, Google’s DMI Index is 93 percent because it generates most of its revenues from advertising based on user interaction data.
The BOE measures were based on extensions and discoveries of proved reserves in 2019 to avoid irregularities relating to COVID-19.
The DMI Index is the value of a company’s data relative to Enterprise Value. Enterprise Value is a key metric used in the investment community and is calculated as equity value plus long-term debt minus cash.
This valuation excludes production data, which is also an important source of value for Oil & Gas Exploration and Production companies.
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