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Production Mix: What Does It Tell Investors?

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Production mix 

ConocoPhillips (COP) has a production mix of 43% and 46% in natural gas and crude oil, respectively. In contrast, EQT (EQT) and Cabot Oil and Gas (COG) have production mixes of 90% and 95%, respectively, in natural gas. Companies with high exposure to natural gas and crude oil will likely be impacted the most by changes in these commodities’ prices.

ExxonMobil’s (XOM) production mix was 46% in both natural gas and crude oil. ExxonMobil has the highest individual weight in the Energy Select Sector SPDR Fund (XLE).

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Price-to-BOE reserves ratio

Below is a breakdown of three other companies’ price-to-BOE (barrels of oil equivalent) reserves ratios, respectively.

  • ConocoPhillips (COP) has a price-to-BOE reserves ratio of 7x.
  • EOG Resources (EOG) has a price-to-BOE reserves ratio of 18x.
  • Apache (APA) has a price-to-BOE reserves ratio of 7.6x.

However, it’s important to note that a lower ratio usually indicates that a company is undervalued compared to its peers.

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