Oil & Gas Multiples
In North America - we use following,
EV / EBITDA, Daily Production, R&R
Wrt to O&G in Americas, P/NAV is a legacy multiple not often used anymore. We rarely see it quoted in deal materials. Apparently, in international O&G deals both P/NPV and P/CF are more commonly used multiples vs. EBITDA based multiples. Is that true?
Also, what would be some cons of using P/NAV and P/CF for international O&G deals? Shouldn’t P/NAV suffer from comparability issues across deals ie difference in price decks / discount rates?
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