global oil and gas_seasonal drop in lng prices_barclays_apr 2014

Equity Research29 April 2014

Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.

Investors should consider this report as only a single factor in making their investment decision.

This research report has been prepared in whole or in part by equity research analysts based outside the US who are not registered/qualified as research analysts with FINRA.

PLEASE SEE ANALYST CERTIFICATION(S) AND IMPORTANT DISCLOSURES BEGINNING ON PAGE 48.

Global Oil & Gas Weekly Seasonal drop in LNG prices Over the past 12 weeks, North East Asia LNG prices have dropped 34% from $19.7/mBtu to $14.7/mBtu currently. This should not, in our opinion, be viewed as a sudden glut in supply in the LNG market but more a reflection of normal seasonality – prices are virtually unchanged y/y and so far during 2014 LNG prices in Asia have averaged $17.6/ mBtu, 2% higher than at this point in 2013. Post the seasonal lull over 2Q and 3Q we would expect to see a sharp recovery in LNG prices towards the end of the year. Demand remains robust particularly in China and Japan and supply additions, at least short term, are limited. The rate of new LNG projects coming on stream accelerates from 2015 onwards, particularly in Australia and the US, and this is likely to limit upside in prices later in the decade but there also remains risk to the performance of the existing LNG stock. We estimate that over 20% of the current LNG production capacity is over 25 years old and as a result may become more susceptible to declines – as has been the case in 2014 with Eni and BG’s Egyptian LNG assets. Of the Global Integrateds, BG (EW, PT 1250p), Shell (OW, PT 2660p), Total (OW, PT EUR55) and Chevron (EW, PT $130) have the most material exposure to the LNG market.

Demand-supply dynamics support near-term LNG prices: We see limited new LNG supply additions in 2014 and with the 5% increase in demand we forecast, pricing is likely to remain robust in 2014. Beyond 2016, there are several large LNG projects scheduled to come on stream, which could put some pressure on spot prices later in the decade. However, it should be noted that the majority of new start-ups that are expected to come on stream typically have volumes that are committed under long- term agreements which are still linked to oil prices. Our long-run LNG price assumption in Asia remains $14/mbtu.

Movement in Asian LNG prices

Source: Energy Intelligence, Barclays Research

5

10

15

20

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14

$/mBtu

European Integrated Oil Lydia Rainforth, CFA +44 (0)20 3134 6669 [email protected] Barclays, London

Joshua Stone +44 (0)20 3134 6694 [email protected] Barclays, London

Americas Integrated Oil Paul Y. Cheng, CFA 1.212.526.1884 [email protected] BCI, New York

European Oil Services & Drilling Mick Pickup +44 (0)20 3134 6695 [email protected] Barclays, London

European Oil & Gas: E&P Alessandro Pozzi +44 (0)20 7773 4745 [email protected] Barclays, London

CEEMEA Oil & Gas Matthew Thomas +44 (0)20 7773 3640 [email protected] Barclays, London

Caroline Learmonth +27 11 895 6080 [email protected] Absa Capital, Johannesburg

Asia ex-Japan Oil & Gas Somshankar Sinha +91 22 6719 6031 [email protected] BSIPL, Mumbai

Barclays | Global Oil & Gas Weekly

29 April 2014 2

Barclays Research Industries included in this report

Industry Industry view Author(s)

Americas Integrated Oil Positive Paul Cheng CFA

Asia ex-Japan Oil Positive Somshankar Sinha, Clement Chen

CEEMEA Oil Neutral Matt Thomas

European Integrated Oil Positive Lydia Rainforth CFA, Joshua Stone

European Exploration & Production Positive Alessandro Pozzi

European Oil Services & Drilling Positive Mick Pickup

European Refining & Marketing Negative Lydia Rainforth CFA, Joshua Stone

Russian Oil Services & Drilling Positive Mick Pickup

US Independent Refiners Positive Paul Cheng, CFA


29 April 2014 3

CONTENTS

CRUDE OIL AND NATURAL GAS PRICES ................................ 4

REFINING AND MARKETING MARGINS .................................. 5

TANKER AND EXCHANGE RATES ............................................ 6

INVENTORIES ................................................................................ 7

CRACK SPREADS .......................................................................... 8

SHARE PRICE PERFORMANCE .................................................. 9

INTEGRATEDS ............................................................................. 10 Valuations........................................................................................................................ 11 Share price performance .............................................................................................. 13

REFINERS ...................................................................................... 17 Valuations........................................................................................................................ 18 Share price performance .............................................................................................. 20

SERVICES ...................................................................................... 24 Valuations........................................................................................................................ 25 Share price performance .............................................................................................. 27

E&PS ............................................................................................... 32 Valuations........................................................................................................................ 33 Share price performance .............................................................................................. 35

GLOBAL EMERGING MARKET OILS ....................................... 41 Valuations........................................................................................................................ 42 Share price performance .............................................................................................. 44 The data source for all charts and tables is “Company data, Barclays Research”, unless otherwise stated. Share prices are as of 25 April 2014 at market close, unless otherwise stated.

Source: Bloomberg, Barclays Research

Corporate Calendar

2014

April

29 BP Q1 2014 Earnings ReleaseEni Q1 2014 Earnings ReleaseGalp Q1 2014 Earnings ReleaseStatoil Q1 2014 Earnings Release

30 Aker Solutions Q1 2014 Earnings ReleaseShell Q1 2014 Earnings ReleaseSubsea 7 Q1 2014 Earnings ReleaseTotal Q1 2014 Earnings Release

May

01 BG Group Q1 2014 Earnings Release

07 CGG Q1 2014 Earnings ReleaseMaire Tecnimont Q1 2014 Earnings Release

08 MOL Q1 2014 Earnings ReleaseRepsol Q1 2014 Earnings ReleasePGS AGM

09 PGS Q1 2014 Earnings ReleaseSBM Offshore Q1 2014 Earnings Release

13 OMV Q1 2014 Earnings Release

14 Polarcus Q1 2014 Earnings ReleaseWood Group Q1 2014 Earnings Release


29 April 2014 4

Crude oil and natural gas prices

Henry Hub Rockies Russia UK-NBP Zee NE Asia LNG

Date Brent WTI ANS Kern River Dubai OPEC WTI-Maya Brent-Urals $/mBtu $/mBtu $/kcf p/therm p/therm $/mBtu

21-Apr-14 109.6 102.3 109.3 103.7 106.0 105.2 8.2 1.6 4.76 4.60 - 48.88 47.86 14.70

14-Apr-14 109.1 104.0 109.5 105.6 105.6 105.4 9.3 1.2 4.62 4.49 - 51.71 51.34 14.80

07-Apr-14 106.6 102.7 108.3 105.1 103.7 103.5 9.2 0.8 4.60 4.47 - 51.60 50.59 15.50

01-Apr-14 105.3 100.5 106.6 103.3 103.2 102.7 9.8 0.7 4.42 4.42 - 49.38 48.81 15.70

Apr-14 107.7 102.4 108.4 104.4 104.6 104.2 9.1 1.1 4.60 4.49 - 50.39 49.65 15.18

Mar-14 107.3 100.5 107.5 104.0 103.9 103.9 10.2 0.9 4.48 4.91 10.94 56.93 55.85 16.75

Feb-14 108.8 100.8 106.6 106.4 104.9 105.3 9.7 1.1 5.96 7.41 11.08 58.97 57.64 19.58

Jan-14 107.4 94.9 103.9 102.8 104.3 105.1 8.2 0.6 4.67 4.70 11.15 65.22 63.61 18.86

2Q 2014 107.7 102.4 108.4 104.4 104.6 104.2 9.1 1.1 4.60 4.49 - 50.39 49.65 15.18

1Q 2014 107.8 98.5 105.9 104.3 104.4 104.9 9.3 0.7 5.04 5.67 11.06 60.37 59.03 18.40

4Q 2013 109.4 97.1 105.0 100.7 106.8 106.5 8.0 0.9 3.85 3.93 11.21 67.89 66.52 18.07

3Q 2013 110.0 105.6 111.0 109.8 106.0 106.7 6.5 (0.1) 3.81 3.40 11.22 65.06 64.96 15.65

2Q 2013 103.0 94.1 104.3 104.7 100.8 101.0 (3.8) 0.9 4.00 3.81 11.72 65.53 67.00 14.69

1Q 2013 112.8 94.3 110.4 113.9 108.0 109.4 (8.4) 2.1 3.50 3.50 12.30 74.27 71.44 17.95

2014 107.8 99.4 106.5 104.3 104.5 104.7 9.3 0.8 4.93 5.38 11.06 57.88 56.69 17.59

2013 108.8 97.9 107.8 107.4 105.4 105.9 0.6 0.9 3.72 3.66 11.61 68.19 67.48 16.59

2012 112.1 94.3 110.9 111.9 109.1 109.6 (5.5) 1.7 2.75 2.68 12.87 59.56 59.32 15.14

2011 111.0 95.1 109.6 112.4 106.1 107.6 (3.6) 1.7 3.94 3.79 11.80 56.84 57.56 13.77

2010 79.7 79.5 78.9 82.8 78.1 77.5 9.2 1.4 4.37 3.94 9.77 42.52 43.06 11.13

2009 62.2 62.1 61.1 64.6 62.1 61.1 5.8 0.6 3.94 3.17 8.21 30.81 31.20 8.91

2008 97.2 99.1 97.9 91.5 93.2 93.5 15.5 3.3 8.82 6.30 10.98 58.11 58.99 11.42

2007 72.7 72.3 71.7 62.3 68.4 68.8 12.5 3.2 6.94 4.10 7.92 29.85 30.38 6.96

2006 65.8 66.2 63.6 55.1 61.6 61.0 15.1 4.9 6.75 5.27 7.19 40.20 43.33 6.46

2005 55.0 56.6 53.7 45.0 49.4 50.7 11.4 4.5 8.91 7.15 5.68 38.30 40.94 5.60

Source: Bloomberg, Datastream Source: Bloomberg, Natural Gas Week, European Gas Markets Source: WGI

Crude - $/blNatural gas


29 April 2014 5

Refining and marketing margins

Date NW Europe US Gulf US W. Coast Singapore Med Eur 6 France Germany Italy UK PADD1 PADD2 PADD3 PADD4 PADD5

21-Apr-14 0.78 9.15 19.15 5.26 1.80 12.94 12.86 9.12 24.03 (4.94)

14-Apr-14 0.92 7.18 12.66 5.27 1.55 15.64 10.00 16.42 21.42 7.02 11.03 12.87 8.63 24.00 4.20

07-Apr-14 1.40 7.01 15.62 5.73 1.66 15.82 10.87 15.44 21.98 7.82 11.10 11.94 6.65 25.72 (6.10)

01-Apr-14 1.62 6.13 7.76 5.45 1.83 14.41 9.42 15.13 20.15 6.86 13.74 16.00 8.19 29.53 10.42

Apr-14 1.18 7.36 13.80 5.43 1.71 15.29 10.09 15.66 21.19 7.23 12.20 13.42 8.15 25.82 0.90

Mar-14 (0.52) 6.85 4.55 5.88 (1.14) 18.41 14.92 15.43 24.59 11.25 11.87 14.23 5.43 29.14 10.62

Feb-14 (0.54) 5.85 10.05 5.58 (0.11) 16.25 11.98 14.87 22.32 9.14 10.44 8.47 3.07 22.66 (3.56)

Jan-14 (0.82) 9.28 5.09 5.81 (0.74) 18.16 13.43 15.31 25.48 12.03 13.92 7.51 4.90 22.45 7.23

2Q 2014 1.18 7.36 13.80 5.43 1.71 15.29 10.09 15.66 21.19 7.23 12.20 13.42 8.15 25.82 0.90

1Q 2014 (0.64) 7.48 6.45 5.76 (0.67) 17.61 13.44 15.20 24.13 10.81 12.07 10.07 4.47 24.75 4.76

4Q 2013 (1.45) 6.06 6.08 3.19 (1.20) 18.27 11.46 20.10 24.21 10.23 15.08 8.87 7.08 29.49 5.36

3Q 2013 0.13 3.75 9.37 4.84 -0.68 17.65 10.92 19.37 23.53 9.56 11.71 8.91 7.06 34.63 2.68

2Q 2013 1.28 11.27 13.63 7.35 1.60 18.52 14.14 20.76 22.46 11.98 12.41 20.09 9.87 37.73 4.29

1Q 2013 1.04 18.89 14.09 8.89 2.33 16.83 14.98 15.67 23.80 6.88 12.11 8.83 6.39 17.70 (2.76)

2014 (0.21) 7.45 8.18 5.68 (0.11) 17.14 12.77 15.30 23.54 10.09 12.21 10.71 5.36 24.87 4.00

2013 0.28 9.95 10.86 6.10 0.52 17.80 12.80 18.99 23.48 9.64 12.83 11.57 7.60 29.82 2.29

2012 2.61 18.66 11.31 8.45 3.59 16.69 11.16 18.58 23.46 9.56 12.52 11.46 7.72 28.38 6.87

2011 0.22 15.02 6.91 8.49 1.33 17.74 14.18 14.27 27.47 9.01 11.65 11.46 8.57 17.26 7.08

2010 1.42 1.29 8.37 4.66 2.46 13.81 10.34 11.36 22.55 6.20 9.07 9.42 7.62 14.49 6.14

2009 1.53 1.68 10.34 3.15 2.95 8.03 7.68 9.22 11.91 3.32 8.26 7.55 6.85 9.02 1.41

2008 3.94 1.42 9.51 8.43 6.54 12.54 11.71 9.76 19.83 8.85 13.30 10.86 11.52 13.87 7.58

2007 2.63 5.72 17.56 6.65 6.08 9.32 7.87 8.10 14.90 6.39 10.56 11.35 8.99 13.02 2.39

2006 1.26 3.53 16.94 5.00 6.05 7.60 5.61 5.80 13.61 5.36 12.52 8.64 10.27 11.49 2.60

2005 2.90 4.62 14.16 6.39 6.40 6.55 4.32 3.01 10.87 4.17 9.08 7.16 8.16 8.73 2.64

Source: Bloomberg, Barclays Research Source: European Energy Commission, Barclays Research Source: Oil & Gas Journal, Bloomberg, Barclays Research

Refining margins - $/bl US gasoline marketing margins - $/blEuropean marketing margins - $/bl


29 April 2014 6

Tanker and exchange rates

Date Suezmax Aframax Clean Dirty EUR/USD GBP/USD GBP/EUR USD/NOK USD/CAD USD/AUS

21-Apr-14 11,033 15,081 12,895 8,137 1.38 1.68 1.22 6.00 1.10 1.08

14-Apr-14 13,613 17,733 12,619 8,595 1.38 1.68 1.21 5.98 1.10 1.07

07-Apr-14 10,246 18,001 13,594 10,258 1.38 1.67 1.21 5.95 1.09 1.07

01-Apr-14 12,111 14,742 13,579 10,169 1.37 1.66 1.21 5.99 1.10 1.08

Apr-14 11,751 16,389 13,172 9,290 1.38 1.67 1.21 5.98 1.10 1.07

Mar-14 14,344 14,794 14,531 10,110 1.38 1.66 1.20 6.00 1.11 1.10

Feb-14 14,463 15,392 21,143 10,273 1.37 1.66 1.21 6.11 1.11 1.11

Jan-14 57,662 51,898 33,829 10,574 1.36 1.65 1.21 6.15 1.09 1.13

2Q 2014 11,751 16,389 13,172 9,290 1.38 1.67 1.21 5.98 1.10 1.07

1Q 2014 28,823 27,361 23,167 10,319 1.37 1.66 1.21 6.09 1.10 1.11

4Q 2013 23,777 18,715 9,576 10,664 1.36 1.62 1.19 6.06 1.05 1.08

3Q 2013 11,704 13,010 12,432 11,439 1.32 1.54 1.17 5.96 1.04 1.09

2Q 2013 12,134 11,765 11,833 12,983 1.31 1.53 1.18 5.84 1.02 1.01

1Q 2013 15,176 14,118 14,293 21,518 1.32 1.55 1.18 5.63 1.00 0.96

2014 20,287 21,875 18,170 9,804 1.38 1.66 1.21 6.03 1.10 1.09

2013 15,698 14,402 12,033 14,151 1.33 1.56 1.18 5.87 1.03 1.03

2012 17,738 14,881 14,769 13,162 1.29 1.59 1.23 5.82 1.00 0.97

2011 19,239 13,528 10,535 12,644 1.39 1.60 1.15 5.61 0.99 0.97

2010 31,259 19,745 14,956 11,292 1.33 1.55 1.17 6.05 1.03 1.09

2009 28,205 15,969 12,738 8,869 1.39 1.57 1.12 6.29 1.14 1.28

2008 78,573 50,923 37,239 25,508 1.47 1.85 1.26 5.65 1.07 1.20

2007 44,781 35,865 30,533 26,018 1.37 2.00 1.46 5.86 1.07 1.19

2006 52,931 39,338 30,758 27,227 1.26 1.84 1.47 6.41 1.13 1.33

2005 53,579 41,650 37,639 31,145 1.24 1.82 1.46 6.44 1.21 1.31

Source: Clarksons Shipping Weekly Source: Datastream

Tanker rates - $/ship/day Exchange rates


29 April 2014 7

Inventories

US crude oil inventories, m bl US gasoline inventories, m bl US distillate inventories, m bl

240

280

320

360

400

440

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52

7 Year Range 2013 2014Week

170

190

210

230

250

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52


80

100

120

140

160

180

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52


US total inventories, m bl US Refinery Utilisation, % Natural Gas Storage, bcf

800

900

1,000

1,100

1,200

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52


65

75

85

95

105

Oct-01 Oct-03 Oct-05 Oct-07 Oct-09 Oct-11 Oct-13

Refinery utilisation Rolling 12 month average

750

1,750

2,750

3,750

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52


Non-commercial Paper Positions, m bl Futures Curve - Brent, $/bl Baker Hughes US Rotary Rig Count

050

100150200250300350400450

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52

2013 2014Week

707580859095

100105110115

Dec-14 Dec-15 Dec-16 Dec-17 Dec-18

Brent WTI

Source: Energy Information Administration (EIA), Commitments of Traders report - US CFTC, American Petroleum Institute (API), Bloomberg, Datastream, Barclays Research

0

400

800

1,200

1,600

2,000

Mar-04 Mar-06 Mar-08 Mar-10 Mar-12 Mar-14

Gas rigs Oil rigs


29 April 2014 8

Crack spreads

European Gasoline Brent Crack Spread, $/bl European Diesel Brent Crack Spread, $/bl European Naptha Brent Crack Spread, $/bl

-10

0

10

20

30

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 5210 Year Range 2013 2014Week

-10

0

10

20

30

40

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52


-30

-20

-10

0

10

20

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52


European Kerosene Brent Crack Spread, $/bl European LSFO Brent Crack Spread, $/bl European HSFO Brent Crack Spread, $/bl

-10

0

10

20

30

40

50

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52


-50

-40

-30

-20

-10

0

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52


-60

-50

-40

-30

-20

-10

0

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 5210 Year Range 2013 2014Week

Brent-Urals Crude Spread, $/bl Brent-WTI Spread, $/bl Brent Spot Price $/bl

-5

-3

-1

1

3

5

7

9

Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14

-10

0

10

20

30


30

60

90

120

150


Source: Energy Information Administration (EIA), Commitments of Traders report - US CFTC, American Petroleum Institute (API), Bloomberg, Datastream, Barclays Research


29 April 2014 9

Share price performance

European Integrateds vs European Market European Services vs European Market European Refiners vs European Market

80

85

90

95

100

105

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14

6065707580859095

100105


75

80

85

90

95

100

105


European E&P vs European Market European Integrateds vs European Services European Integrateds vs European Refiners

70

75

80

85

90

95

100

105


859095

100105110115120125130


60

70

80

90

100

110

120

130


European Integrateds vs European E&P European Services vs European Refiners European Services vs European E&P

85

90

95

100

105

110

115

120


50

60

70

80

90

100

110


70

75

80

85

90

95

100

105

110


Source: Datastream, Barclays Research. The European Market is the Eurostoxx, the European Integrateds, is the corresponding FTSE 300 index. The Barclays European Refining Index is calculated using arithmetic averages for companies under coverage. The Barclays European Services Index is calculated using market capitalisation weighted averaged for companies under coverage. The Barclays E&Ps Index is calculated using a free float weighted average for our coverage. Source: Datastream, Barclays Research. Relative calculations use the FTSE 300 Integrated Sector (Euro) for the European companies and the S&P500 Integrated Sector (US) for the US companies.


29 April 2014 10

Integrateds


29 April 2014 11

Valuations IntegratedsChange in

Price Target Up/(Down) cons in

Company Rating 25-Apr Price side, % 13F 14F 15F 13F 14F 15F 13F 14F 15F 13F 14F 15F 13F 14F 15F EPS EPS last mnth

MajorsBP U/W 494 550 11 6.1 5.5 5.5 10.7 9.8 10.2 2.0 2.5 4.1 4.9 5.2 5.4 9.0 8.5 8.5 46.2 47.7 -2

Chevron* E/W 124 130 5 7.4 7.4 6.7 12.7 13.3 11.8 (0.5) (0.5) 1.4 3.5 3.8 4.1 11.8 10.7 10.7 9.8 10.9 -2

ExxonMobil* E/W 100.4 95.0 (5) 10.2 10.7 10.3 14.8 16.2 15.8 2.9 2.8 3.1 2.7 3.0 3.3 15.2 12.3 12.3 6.8 7.5 0

Royal Dutch Shell A O/W 2249 2660 18 6.4 6.3 6.4 10.8 10.3 10.3 2.2 2.7 2.6 5.1 5.4 5.7 10.1 9.5 9.5 3.5 3.5 0

Royal Dutch Shell B O/W 2402 2660 11 6.8 6.7 6.7 11.6 11.0 11.0 2.0 2.5 2.4 4.8 5.1 5.3 10.1 9.5 9.5 3.5 3.4 0

Total O/W 49.6 55.0 11 6.1 5.8 5.5 11.1 10.5 10.6 1.2 2.6 3.7 4.9 5.0 5.1 11.0 10.1 10.1 6.0 6.3 -1

Arithmetic average 8 7.2 7.1 6.9 11.9 11.9 11.6 1.7 2.1 2.9 4.3 4.6 4.8 11.2 10.1 10.1 -1

Integrated - EuropeBG Group E/W 1145 1250 9 10.6 9.0 7.6 17.9 14.4 11.3 (6.4) (1.6) 1.9 1.7 1.9 2.1 7.8 9.8 9.8 64.0 69.0 1

Eni E/W 18.4 20.5 11 6.1 5.6 5.5 13.6 11.5 10.7 (1.4) 2.0 2.1 6.1 6.2 6.3 6.5 7.6 7.6 1.4 1.3 -3

Galp O/W 12.7 17.0 34 15.0 12.7 10.5 37.4 26.7 22.5 (4.3) (2.2) (1.7) 2.7 3.3 3.9 4.8 7.3 7.3 0.3 0.4 -1

MOL U/W 13195 14500 10 5.6 4.7 4.4 11.5 8.4 8.5 7.3 8.0 5.4 2.6 3.6 3.5 5.8 6.7 6.7 1145 1525 -2

OMV U/W 32.0 38.0 19 4.4 4.3 4.0 8.5 8.7 8.3 (2.7) 0.2 6.0 4.1 4.2 4.4 9.5 7.6 7.6 3.7 3.9 -1

Repsol E/W 18.9 23.0 22 6.8 5.9 5.2 16.1 13.8 11.7 7.0 9.7 14.8 5.3 5.3 5.3 4.6 7.6 7.6 1.2 1.4 -1

Statoil O/W 173.3 195.0 13 4.7 4.5 4.3 12.0 11.6 11.4 1.1 2.3 4.1 4.2 4.3 4.5 10.8 9.8 9.8 14.5 14.9 -1


Integrated - US*ConocoPhillips O/W 74.4 83.0 12 7.3 7.1 6.5 13.5 12.8 10.5 (1.7) (1.9) 0.4 3.7 3.8 3.8 10.5 11.1 11.1 5.5 6.1 -1

Hess O/W 87.4 90.0 3 7.7 7.0 6.5 22.7 19.2 17.3 (0.8) 0.9 2.4 1.1 1.1 1.1 5.2 5.8 5.8 3.9 4.6 0

Murphy E/W 63.7 65.0 2 5.2 4.9 5.3 13.1 12.9 15.4 (5) (1.6) (2.0) 2.0 2.0 2.0 8.0 6.1 6.1 4.9 5.5 0

Arithmetic average 7 6.5 6.2 6.0 16.2 14.9 13.9 (2.0) (0.5) 0.4 2.2 2.2 2.2 7.7 7.7 7.7 0

The price targets for the European companies are based on a sum-of-the-parts based DCF methodology. For the US they are based on return on market capitalisation under mid-cycle assumptions.

Source: Company data, Datastream, Barclays Research. * Chevron, Exxon Mobil and the US Integrateds are covered by Barclays Integrated oil research team, headed by Paul Cheng, in New York. The forecasts for these companies are based on assumptions which are aligned but may sometimes differ from those used for the European companies.

EV:EBIDA, xBarclays

2013Cons 2014

P/E, x Dividend yield, % RoACE, %FCF yield, %


29 April 2014 12

Valuations Integrateds

EV:EBIDA, x P/E, x Dividend yield, %

0

5

10

15

20

BPC

VX

XO

MRD

STO

T

BG ENI

Gal

pM

OL

OM

VRE

PST

L

CO

PH

ESM

UR

EV/EBIDA 2014 Average

0

10

20

30

40

BPC

VX

XO

MRD

STO

T

BG ENI

Gal

pM

OL

OM

VRE

PST

L

CO

PH

ESM

UR

P/E 2014 Average

01234567

BPC

VX

XO

MRD

STO

T

BG ENI

Gal

pM

OL

OM

VRE

PST

L

CO

PH

ESM

UR

Dividend Yield, % 2014 Average

Free cash flow yield, % RoACE, % Gearing - Net Debt to Equity, %

-5

0

5

10

BPC

VX

XO

MRD

STO

T

BG ENI

Gal

pM

OL

OM

VRE

PST

L

CO

PH

ESM

UR

FCF Yield, % 2014 Average

0

5

10

15

20

BPC

VX

XO

MRD

STO

T

BG ENI

Gal

pM

OL

OM

VRE

PST

L

CO

PH

ESM

UR

RoACE, % 2014 Average

0102030405060

BPC

VX

XO

MRD

STO

T

BG ENI

Gal

pM

OL

OM

VRE

PST

L

CO

PH

ESM

UR

2013 2014

Datastream consensus e relative to Barclays EPS, % Dollar EPS change y/y, % EV/b, $

-10-8-6-4-202

BPC

VX

XO

MRD

STO

T

BG ENI

Gal

pM

OL

OM

VRE

PST

L

CO

PH

ESM

UR

Cons vs BC EPS (%) 2014 Average

-0.40-0.30-0.20-0.100.000.100.20

BPC

VX

XO

MRD

STO

T

BG ENI

Gal

pM

OL

OM

VRE

PST

L

CO

PH

ESM

UR

EPS Growth 2014 Average

0

5

10

15

20

25

BPC

VX

XO

MRD

STO

T

BG ENI

Gal

pM

OL

OM

VRE

PST

L

CO

PH

ESM

UR

EV: 2P reserves 2014 Average

Source: Datastream, Barclays Research estimates


29 April 2014 13

Share price performance Integrateds

Change in USD share price over last week, % Change in USD share price over last month, % Change in USD share price over last three months, %

-3 -2 -1 0 1 2 3

ENISTL

XOMCOPCVX

RDSAGALP

REPTOT

BGOMVMOL

BP

0 2 4 6 8 10 12 14

OMVGALP

ENISTL

RDSAREPTOT

BPBG

CVXXOMCOPMOL

-15 -10 -5 0 5 10 15 20

BGMOLOMV

BPXOMRDSA

REPCVXENI

GALPCOPTOTSTL

Change in USD share price over last year, % European Integrateds vs Brent European Integrateds vs US Integrateds

-20 -10 0 10 20 30 40 50

MOLOMVCVXENI

GALPRDSAXOM

BGBP

REPSTL

COPTOT

80

85

90

95

100

105

110

115


85

90

95

100

105

110


BP vs European Integrateds Chevron vs US Integrateds ConocoPhillips vs US Integrateds

400

420

440

460

480

500

520

90

95

100

105

110


BP vs Sector BP, p

100

105

110

115

120

125

130

85

90

95

100

105


CVX vs Sector CVX, $

50

55

60

65

70

75

80

9095

100105110115120125130


COP vs Sector COP, $

Source: Datastream, Barclays Research. Relative calculations use the FTSE 300 Integrated Sector (Euro) for the European companies and the S&P500 Integrated Sector (US) for the US companies.


29 April 2014 14


Exxon Mobil vs US Integrateds Royal Dutch Shell A vs Royal Dutch Shell B Royal Dutch Shell A vs European Integrateds

80

85

90

95

100

105

90

94

98

102

106

110

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14XOM vs Sector XOM, $

94

95

96

97

98

99

100

101


2000

2250

2500

2750

3000

85

88

91

94

97

100

103

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14RDSA vs Sector RDSA, p

Total vs European Integrateds BG Group vs European Integrateds Eni vs European Integrateds

34363840424446485052

859095

100105110115120125

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14TOT vs Sector TOT, E

900

1000

1100

1200

1300

1400

70

80

90

100

110

120

130

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14BG vs Sector BG, p

14

15

16

17

18

19

20

80

85

90

95

100

105

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14ENI vs Sector ENI, E

Galp vs European Integrateds Repsol vs European Integrateds Statoil vs European Integrateds

101111121213131414

80

85

90

95

100

105

110

115

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14GALP vs Sector GALP, E

121314151617181920

90

95

100

105

110

115

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14REP vs Sector REP, E

110

120

130

140

150

160

170

180

80

85

90

95

100

105

110

115

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14STL vs Sector STL, NOK

Source: Datastream, Barclays Research. Relative calculations use the FTSE 300 Integrated Sector (Euro) for the European companies and the S&P500 Integrated Sector (US) for the US companies.


29 April 2014 15


BP vs Total BP vs Shell Total vs Eni

70

75

80

85

90

95

100

105

110


80

85

90

95

100

105

110

115


80

90

100

110

120

130


Total vs Shell BG vs Statoil Eni vs Repsol

70

80

90

100

110

120

130


60

70

80

90

100

110

120

130


60

70

80

90

100

110


OMV vs Repsol BG vs Eni Eni vs Statoil

60

70

80

90

100

110


50

70

90

110

130

150


70

80

90

100

110

120


Source: Datastream, Barclays Research


29 April 2014 16

Share price performance Integrateds Local Price

25-Apr -1d -5d -10d -30d MTD QTD YTD 1Q 14 4Q 13 3Q 13 2Q 13 1Q 13 4Q 12

Indices & marketsFTSE All 3581 -0.3 0.8 2.1 2.8 1.6 1.6 0.7 -0.9 7.1 9.7 -3.1 2.1 33.8StoxxEuro 321 -1.1 -0.1 0.5 3.4 -0.4 -0.4 2.5 2.9 7.9 14.6 0.0 -0.6 14.5S&P 500 1863 -0.8 -0.1 2.6 1.2 -0.5 -0.5 0.8 1.3 9.1 4.1 2.8 10.0 38.8MSCI EMG 1920 -0.4 0.2 1.3 2.9 0.2 0.2 0.3 0.0 4.9 9.8 -1.7 4.4 19.9Hang Seng 22224 -1.5 -2.4 -3.4 3.3 0.4 0.4 -4.6 -5.0 2.0 9.9 -6.6 -1.7 13.2

Integrated - MajorsBP 494 0.9 2.4 4.4 4.6 3.7 3.7 2.6 -1.0 15.4 0.6 -1.4 1.1 39.3Chevron 124 -0.2 0.3 5.9 8.7 4.3 4.3 -0.7 -4.8 3.0 2.0 -1.1 9.9 60.3ExxonMobil 100.4 0.4 0.0 3.8 7.4 2.8 2.8 -0.8 -3.5 17.7 -4.7 -0.5 4.1 52.9Royal Dutch Shell A 27.3 -0.2 0.2 2.9 5.8 3.3 3.3 5.8 2.4 9.0 3.1 -1.4 -5.5 39.2Royal Dutch Shell B 2402 -0.2 0.4 2.7 5.9 3.5 3.5 6.9 3.3 10.1 3.9 -0.8 -6.2 50.5Total 49.6 -0.5 0.7 3.6 7.2 4.7 4.7 11.9 6.9 5.1 18.8 1.6 -6.7 15.1Arithmetic Average 0.0 0.7 3.9 6.6 3.7 3.7 4.3 0.6 10.0 3.9 -0.6 -0.6 42.9

Integrated - EuropeBG Group 1145 -0.4 1.0 3.4 8.1 3.3 3.3 -10.4 -13.3 12.8 11.1 -1.4 4.2 8.7Eni 18.4 -1.6 -2.1 1.2 6.9 1.6 1.6 5.8 4.1 3.1 10.2 -8.9 -6.9 32.0Galp 12.7 0.2 0.7 1.9 7.4 1.5 1.5 6.8 5.2 -3.0 9.9 -5.8 1.2 2.1OMV 32.0 -1.4 0.9 0.9 1.4 -2.4 -2.4 -7.6 -5.3 -2.6 4.4 5.8 18.1 20.3Repsol 18.9 -0.3 0.7 1.7 8.1 2.5 2.5 3.7 1.1 3.1 18.1 3.5 0.7 5.7Statoil 173 0.8 -0.9 3.6 4.1 2.3 2.3 19.2 16.5 7.5 8.7 -15.5 -3.1 32.9Arithmetic Average -0.4 0.0 2.1 6.0 1.5 1.5 2.9 1.4 3.5 10.4 -3.7 2.4 16.9

Integrated - USConocoPhillips 74.4 -0.1 -0.5 5.0 11.7 5.8 5.8 5.3 -0.4 0.9 13.5 0.0 3.6 55.7Cenovus Energy 32.5 -0.2 0.6 1.2 12.0 1.8 1.8 3.1 1.2 -4.1 4.7 -8.8 -7.4 29.8Hess 87.4 -1.0 0.2 4.6 8.9 5.5 5.5 5.3 -0.1 5.5 15.9 -9.6 35.2 6.0Husky Energy 35.4 -0.9 -2.8 0.2 8.8 6.9 6.9 1.3 -5.3 10.5 8.0 -7.2 -2.8 24.5Imperial Oil 53.0 -0.3 1.5 1.8 4.3 3.0 3.0 8.5 5.4 1.4 15.1 -6.6 -4.8 17.7Murphy 63.7 -1.6 -0.3 6.9 5.8 1.4 1.4 -1.8 -3.1 6.6 14.2 -3.8 7.0 21.7Suncor 41.0 0.0 0.8 3.1 13.6 6.2 6.2 6.0 -0.2 -2.6 21.4 -3.1 -8.8 11.6Arithmetic Average -0.6 -0.1 3.3 9.3 4.4 4.4 3.9 -0.4 2.6 13.3 -5.6 3.2 23.8

Source: Datastream, Barclays Research. The European Market is the Eurostoxx, the European Integrateds, is the corresponding FTSE 300 index. The Barclays European Refining Index is calculated using arithmetic averages for

companies under coverage. The Barclays European Services Index is calculated using market capitalisation weighted averaged for companies under coverage. The Barclays E&Ps Index is calculated using a free float weighted

average for our coverage.


29 April 2014 17

Refiners


29 April 2014 18

Valuations RefinersChange in



Refiners - EuropeHellenic E/W 6.28 9.00 43 6.4 5.8 5.5 7.6 7.0 7.0 15.2 16.5 16.5 7.2 7.2 7.2 7.2 7.9 7.9 0.82 0.34 -15

Grupa Lotos E/W 39.1 34.0 (13) 8.8 9.0 8.9 11.5 12.8 13.0 5.5 4.6 4.5 0.0 0.0 0.0 4.0 3.5 3.5 3.38 4.35 0

Motor Oil O/W 8.85 9.50 7 6.9 6.7 6.3 8.7 9.3 9.3 16.6 15.8 15.8 5.6 5.6 5.6 10.9 11.1 11.1 1.02 0.85 -13

Neste Oil U/W 14.78 15.0 1 7.7 6.5 6.1 14.5 12.2 12.0 7.1 9.9 9.9 4.5 4.6 4.7 6.8 6.8 6.8 1.02 1.22 -2

PKN Orlen U/W 45.1 40.0 (11) 5.5 4.5 3.7 12.6 9.8 8.6 9.4 12.4 23.6 0.0 0.0 0.0 5.9 7.1 7.1 3.57 2.80 -8

Saras U/W 1.25 1.00 (20) 5.3 4.9 4.3 50 52 41.3 10.1 10.0 10.5 0.0 0.0 0.0 2.7 3.6 3.6 0.03 -0.02 -13

Tupras U/W 47.7 42.8 (10) 8.5 8.0 - 7.9 9.5 - 3 6.9 - 8.5 8.8 - 16.9 14.0 - 6.01 4.57 -2


Refiners - US*Alon USA Energy U/W 16.4 14.0 (15) 7.1 9.9 6.7 13.1 27.4 13.1 8.6 5.4 10.3 1.8 2.8 3.0 9.3 9.0 9.0 1.25 0.86 14

Delek US Holdings O/W 31.2 35.0 12 7.3 8.0 5.8 13.6 15.2 9.6 2.9 0.2 9.0 2.4 3.0 3.7 14.2 17.2 17.2 2.30 2.38 -4

Tesoro O/W 55.0 100 82 5.6 5.2 4.8 9.5 8.0 6.9 4.6 3.3 3.3 2.4 3.1 3.8 16.5 17.4 17.4 5.80 5.30 -9

Valero O/W 56.7 70.0 24 6.0 6.1 6.0 8.9 9.9 9.9 7.5 6.5 6.6 1.8 2.1 2.5 14.9 12.0 12.0 6.35 6.07 3

Arithmetic average 26 6.5 7.3 5.8 11.3 15.1 9.9 5.9 3.8 7.3 2.1 2.8 3.3 13.7 13.9 13.9 1

The price targets for the European companies are based on a sum-of-the-parts based DCF methodology. For the US they are based on an assumed discount to the estimated greenfield replacement value.

RoACE, %Barclays

2014Cons 2014

Dividend yield, %EV:EBIDA, x P/E, x FCF yield, %

Source: Company data, Datastream, Barclays Research. *The US Refiners are covered by Barclays Integrated oil research team, headed by Paul Cheng, in New York.


29 April 2014 19

Valuations Refiners


0

2

4

6

8

10

HEP

LOT

MO

H

NES

T

PKN

SRS

TUP

ALJ DK

TSO

VLO


0

5

10

15

20

HEP

LOT

MO

H

NES

T

PKN

SRS

TUP

ALJ DK

TSO

VLO

P/E 2014 Average

0

2

4

6

8

10

HEP

LOT

MO

H

NES

T

PKN

SRS

TUP

ALJ DK

TSO

VLO



-20

-10

0

10

20

HEP

LOT

MO

H

NES

T

PKN

SRS

TUP

ALJ DK

TSO

VLO


0

5

10

15

20

HEP

LOT

MO

H

NES

T

PKN

SRS

TUP

ALJ DK

TSO

VLO


-50

0

50

100

150

200

HEP

LOT

MO

H

NES

T

PKN

SRS

TUP

ALJ DK

TSO

VLO

2013 2014

Datastream consensus e relative to Barclays EPS, % Dollar EPS change y/y, % EV: Capital employed, x

-20

30

80

130

180

HEP

LOT

MO

H

NES

T

PKN

SRS

TU

P

ALJ DK

TSO

VLO


-100%

-50%

0%

50%

100%

HEP

LOT

MO

H

NES

T

PKN

SRS

TUP

ALJ DK

TSO

VLO


0.0

0.5

1.0

1.5

2.0

HEP

LOT

MO

H

NES

T

PKN

SRS

TUP

ALJ DK

TSO

VLO

EV/Capital Employed 2014 Average

Source: Datastream, Barclays estimates


29 April 2014 20

Share price performance Refiners


-6 -4 -2 0 2 4

ELPESRSORL

BrentESSRMOH

SectorNES1V

LTSTUPRS

PKN

-15 -10 -5 0 5 10 15

ELPEMOH

SRSESSR

NES1VSectorBrent

LTSORLPKN

TUPRS

-20 -10 0 10 20 30 40 50 60

ELPEORL

BrentMOHESSR

NES1VLTS

SectorPKN

TUPRSSRS

Change in USD share price over last year, % European Refiners vs Brent European Refiners vs US Refiners

-60 -40 -20 0 20 40

ESSRORL

ELPETUPRS

PKNSector

LTSBrentMOH

SRSNES1V

70

75

80

85

90

95

100

105

110


60

70

80

90

100

110

120

130

140


Essar vs European Refiners Hellenic Petroleum vs European Refiners Lotos Group vs European Refiners

50

70

90

110

130

150

170

40

50

60

70

80

90

100

110

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14ESSAR vs Sector ESSR, p

2345678910

5060708090

100110120130

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14ELPE vs Sector ELPE, E

20

25

30

35

40

45

80859095

100105110115120

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14LTS vs Sector LTS, PLN

Source: Datastream, Barclays Research. The European Market is the Eurostoxx, the European Integrateds, is the corresponding FTSE 300 index. The Barclays European Refining Index is calculated using arithmetic averages for companies under coverage. The Barclays European Services Index is calculated using market capitalisation weighted averaged for companies under coverage. The Barclays E&Ps Index is calculated using a free float weighted average for our coverage.


29 April 2014 21


Motor Oil vs European Refiners Neste Oil vs European Refiners ORL vs European Refiners

234567891011

50

70

90

110

130

150

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14MOH vs Sector MOH, E

4

8

12

16

20

60708090

100110120130140150160

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14NES1V vs Sector NES1V, E

80

100

120

140

160

180

40

50

60

70

80

90

100

110

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14ORL vs Sector ORL, ILS

PKN Orlen vs European Refiners Saras vs European Refiners Tupras vs European Refiners

25

35

45

55

65

60

70

80

90

100

110

120

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14PKN vs Sector PKN, PLN

0.50.60.70.80.91.01.11.21.31.4

60708090

100110120130140

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14SRS vs Sector SRS, E

202530354045505560

50

60

70

80

90

100

110

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14Tupras vs Sector TUPRS, TRY

Source: Datastream, Barclays Research. The European Market is the Eurostoxx, the European Integrateds, is the corresponding FTSE 300 index. The Barclays European Refining Index is calculated using arithmetic averages for companies under coverage. The Barclays European Services Index is calculated using market capitalisation weighted averaged for companies under coverage. The Barclays E&Ps Index is calculated using a free float weighted average for our coverage.


29 April 2014 22


PKN Orlen vs Lotos Group Saras vs Motor Oil Saras vs Neste

60

70

80

90

100

110


40

60

80

100

120

140


50

60

70

80

90

100

110

120

130


Neste vs Tupras Tupras vs Saras Hellenic vs Motor Oil

60

80

100

120

140

160

180


40

60

80

100

120

140


60

80

100

120

140

160


Essar vs Neste

10

30

50

70

90

110

130


Source: Datastream, Barclays.


29 April 2014 23

Share price performance RefinersLocal Price


Indices & marketsFTSE All 3581 -0.3 0.8 2.1 2.8 1.6 1.6 0.7 -0.9 7.1 9.7 -3.1 2.1 33.8StoxxEuro 321 -1.1 -0.1 0.5 3.4 -0.4 -0.4 2.5 2.9 7.9 14.6 0.0 -0.6 14.5S&P 500 1863 -0.8 -0.1 2.6 1.2 -0.5 -0.5 0.8 1.3 9.1 4.1 2.8 10.0 38.8MSCI EMG 1920 -0.4 0.2 1.3 2.9 0.2 0.2 0.3 0.0 4.9 9.8 -1.7 4.4 19.9Refiners - EuropeHellenic 6.28 -3.0 -4.8 -5.5 -17.7 -13.3 -13.3 -16.8 -4.1 0.6 14.1 -5.0 -1.4 32.8Grupa Lotos 39.1 2.0 0.3 -0.7 6.1 2.1 2.1 9.2 7.0 -1.1 6.6 -14.3 -5.5 57.2MOL 13195 1.8 1.7 -1.3 6.8 4.7 4.7 -12.3 -16.2 -8.1 -2.7 5.9 -12.4 -4.5Motor Oil 8.85 0.7 -0.2 -1.5 -10.4 -6.5 -6.5 8.1 15.6 9.2 10.2 -2.4 -11.1 25.2Neste Oil 14.78 -5.0 0.1 -1.2 -0.5 0.3 0.3 3.3 3.0 -10.4 48.7 3.4 9.7 -11.0ORL 0.98 -0.5 -1.3 -2.9 2.2 1.9 1.9 -12.5 -11.6 -8.1 -14.1 -15.6 -2.0 26.2PKN Orlen 45.1 -1.3 3.0 0.3 11.2 3.6 3.6 9.1 5.3 -5.8 -1.5 -11.5 -1.2 50.4Saras 1.25 -0.6 -2.2 -2.6 13.0 -0.9 -0.9 51.2 52.6 -7.7 -1.7 6.4 -6.8 -37.0Tupras 47.7 1.1 2.0 1.5 17.7 5.5 5.5 11.9 6.1 -7.2 -12.7 -19.8 5.3 56.3Arithmetic Average -0.5 -0.2 -1.5 3.2 -0.3 -0.3 5.7 6.4 -4.3 5.2 -5.9 -2.8 21.7

Refiners - USAlon 16.4 -0.4 4.3 16.8 3.0 9.9 9.9 -0.7 -9.7 62.3 -27.4 -23.0 5.3 200.0Delek 31.2 0.0 -0.1 11.2 1.3 7.5 7.5 -9.3 -15.6 61.9 -24.8 -27.1 55.8 245.4HollyFrontier 51.9 0.8 2.1 12.3 4.3 9.0 9.0 4.4 -4.2 18.8 3.4 -16.7 10.5 262.0Marathon Petroleum 90.7 0.0 0.9 8.9 -3.5 4.2 4.2 -1.1 -5.1 42.7 -8.6 -20.9 42.2 NASunCoke Energy 20.7 -4.5 -5.3 -4.6 -4.6 -9.2 -9.2 -9.1 0.1 32.9 21.1 -12.0 4.7 NATesoro 55.0 1.5 4.0 15.9 3.4 8.7 8.7 -6.0 -13.5 35.7 -15.3 -8.0 32.9 298.3Valero 56.7 0.2 1.2 11.2 4.5 6.7 6.7 12.4 5.4 48.9 -0.3 -15.4 33.3 97.7Arithmetic Average -0.3 1.0 10.2 1.2 5.3 5.3 -1.3 -6.1 43.3 -7.4 -17.6 26.4 220.7

Source: Datastream, Barclays Research. The European Market is the Eurostoxx, the European Integrateds, is the corresponding FTSE 300 index. The Barclays European Refining Index is calculated using arithmetic averages for companies

under coverage. The Barclays European Services Index is calculated using market capitalisation weighted averaged for companies under coverage. The Barclays E&Ps Index is calculated using a free float weighted average for our coverage.


29 April 2014 24

Services


29 April 2014 25

Valuations ServicesChange in



Services - EuropeAker Solutions U/W 100 106 6 9.7 8.1 7.8 21.1 13.4 10.9 (6.7) 8.2 8.7 4.0 3.7 4.1 8.7 11.3 13.9 7.45 7.68 -2CGG Veritas U/W 12.3 13.6 10 (11.5) 21.4 13.8 (4.1) 17.6 9.7 (52) (28) (13) 0.0 0.0 0.0 (8.0) 4.1 5.8 0.70 0.61 -15Hunting O/W 869 1050 21 11.7 10.7 9.1 14.5 14.0 12.3 11.9 9.3 18.5 3.4 3.5 3.9 8.3 9.2 10.1 100.70 97.82 60Maire Tecnimont O/W 2.63 3.25 24 21.5 11.6 8.8 48.1 14.4 11.0 (24) (0.3) 8.4 0.0 0.0 0.0 5.6 13.1 13.1 0.18 0.15 -1Petrofac U/W 1443 1655 15 11.4 10.3 8.4 11.8 12.2 10.2 (8.5) 3.6 2.0 3.0 3.1 3.7 26.1 21.0 21.9 1.99 1.98 0PGS O/W 71.5 93.0 30 7.7 7.6 6.3 10.2 7.3 7.1 (5.0) (2.5) (1.6) 1.2 4.6 5.5 9.3 8.3 10.1 1.16 1.27 -4Polarcus E/W 4.31 6.4 48 5.0 4.8 4.1 9.3 5.1 3.8 1.0 2.4 6.8 0.0 0.0 0.0 0.5 0.5 0.4 0.14 0.11 -11Saipem E/W 19.5 20.0 3 23.3 10.9 7.4 nm 24.8 11.8 (5.6) 6.5 12.8 0.0 1.3 2.8 (1.1) 4.7 8.3 0.79 0.81 1SBM Offshore O/W 13.0 18.4 41 nm 7.0 7.5 30.1 8.2 5.3 (30) (20) (21) 0.0 0.0 0.0 4.6 10.5 12.3 1.60 1.69 -4Subsea 7 O/W 113 175 55 9.0 6.4 5.9 18.9 10.3 8.8 4.5 2.3 2.6 3.3 3.2 3.6 5.2 9.1 9.9 1.83 1.89 0Technip O/W 82.3 100 22 9.1 9.4 6.8 17.5 17.4 12.4 7.8 5.9 10.2 2.2 2.7 3.0 9.8 9.3 12.7 4.72 4.82 -2Tecnicas Reunidas E/W 42.6 49 15 13.8 11.0 7.8 16.6 14.1 12.4 6.4 9.2 9.3 3.3 3.9 4.4 26.3 27.6 27.0 3.03 2.65 -1TGS U/W 200 185 -7 5.2 4.5 4.3 12.8 12.4 11.9 2.3 6.1 5.9 4.3 4.7 4.2 22.2 20.2 19.2 2.70 2.59 1Wood Group O/W 792 1025 30 12.1 11.1 9.4 12.2 12.1 10.8 4.9 7.4 7.7 1.5 1.5 1.7 14.3 13.9 15.0 0.65 0.63 0Arithmetic average 22 9.9 9.6 7.7 16.9 13.1 9.9 (6.7) 0.8 4.1 1.9 2.3 2.6 9.4 11.6 12.8 2Source: Company data, Datastream , Barclays Research - Price targets are base d on a sum-of- the-parts based DC F methodology.

Barclays 2014

Cons 2014

RoACE, %EV:EBIDA, x P/E, x FCF yield, % Dividend yield, %


29 April 2014 26

Valuations Services


-10-505

1015

AKS

O

CG

G

HT

G

MT

PFC

PLC

S

PGS

SPM

SBM

SUB

TEC

TR

S

TG

S

WG


05

1015202530

AKS

O

CG

G

HTG M

T

PFC

PLC

S

PGS

SPM

SBM

SUB

TEC

TRS

TGS

WG

P/E 2014 Average

0

1

2

3

4

5

AKS

O

CG

G

HTG M

T

PFC

PLC

S

PGS

SPM

SBM

SUB

TEC

TRS

TGS

WG



-10

-5

0

5

10

15

AKS

O

CG

G

HTG M

T

PFC

PLC

S

PGS

SPM

SBM

SUB

TEC

TRS

TGS

WG


05

1015202530

AKS

O

CG

G

HTG M

T

PFC

PLC

S

PGS

SPM

SBM

SUB

TEC

TRS

TGS

WG


-2000

200400600800

1000

AKS

O

CG

G

HTG M

T

PFC

PLC

S

PGS

SPM

SBM

SUB

TEC

TRS

TGS

WG

2013 2014

Datastream consensus e relative to Barclays EPS, % Dollar EPS change y/y, % EV:Capital Employed, x

-20

-10

0

10

20

AKS

O

CG

G

HTG M

T

PFC

PLC

S

PGS

SPM

SBM

SUB

TEC

TRS

TGS

WG


-100%

0%

100%

200%

300%

AKS

O

CG

G

HT

G

MT

PFC

PLC

S

PGS

SPM

SBM

SUB

TEC

TR

S

TG

S

WG


-4

1

6

11

16

AKS

O

CG

G

HTG M

T

PFC

PLC

S

PGS

SPM

SBM

SUB

TEC

TRS

TGS

WG


Source: Datastream, Barclays Research estimates


29 April 2014 27

Share price performance Services


-2 0 2 4 6 8 10 12

BrentSBMO

PFCHTGPGSTRE

AMCSPMWG

SectorAKSO

SUBCGGTECMT

0 5 10 15 20

PFCBrent

PGSWG

HTGSUB

AKSOTRE

SBMOSector

CGGMT

TECAMCSPM

-20 0 20 40 60

SBMOSUB

BrentAKSO

CGGPGSTRE

HTGSector

SPMWG

AMCPFCTECMT

Change in USD share price over last year, % European Services vs US Services Amec vs European Services

-50 0 50 100 150 200 250

CGGPGSSUB

AKSOSPM

SectorTECWG

BrentSBMO

PFCHTGTRE

AMCMT

50

60

70

80

90

100

110


700

900

1100

1300

70

80

90

100

110

120

130

140

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14AMEC vs Sector AMEC, p

Aker Solutions vs European Services CGG Veritas vs European Services Maire Tecnimont vs European Services

405060708090100110120

65707580859095

100105110

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14AKSO vs Sector AKSO, NOK

8

12

16

20

24

28

32

65

75

85

95

105

115

125

135

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14CGG vs Sector CGG, E

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1060

110160210260310360410

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14MT vs Sector MT, E

Source: Datastream, Barclays Research. Relative calculations use the Barclays Oil Services Index calculated as a market capitalisation weighted average for companies under coverage


29 April 2014 28


Petrofac vs European Services PGS vs European Services Saipem vs European Services

1000

1100

1200

1300

1400

1500

1600

60

70

80

90

100

110

120

130

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14PFC vs Sector PFC, p

40

50

60

70

80

90

100

6065707580859095

100105

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14PGS vs Sector PGS, NOK

10

12

14

16

18

20

22

24

10

30

50

70

90

110

130

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14SPM vs Sector SPM, E

SBM Offshore vs European Services Subsea 7 vs European Services Technip vs European Services

0

5

10

15

20

25

40

60

80

100

120

140

160

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14SBMO vs Sector SBMO, E

80

100

120

140

160

80

85

90

95

100

105

110

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14SUB vs Sector SUB, NOK

60

65

70

75

80

85

90

95

80859095

100105110115120

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14TEC vs Sector TEC, E

Tecnicas Reunidas vs European Services Wood Group vs European Services

30

32

34

36

38

40

42

44

80

90

100

110

120

130

140

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14TRE vs Sector TRE, E

600

650

700

750

800

850

900

950

80859095

100105110115120125

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14WG vs Sector WG, p

Source: Datastream, Barclays Research. Relative calculations use the Barclays Oil Services Index calculated as a market capitalisation weighted average for companies under coverage.


29 April 2014 29


Amec vs Wood Group Saipem vs Technip Petrofac vs Wood Group

70

80

90

100

110

120

130

140

150


30

50

70

90

110

130


60

70

80

90

100

110

120

130


Maire Tecnimont vs Tecnicas Reunidas PGS vs CGG Veritas Petrofac vs Maire Tecnimont

10

60

110

160

210

260

310


70

80

90

100

110

120

130


20

40

60

80

100

120

140

160


Petrofac vs Tecnicas Reunidas Subsea 7 vs Saipem Subsea 7 vs Technip

50

60

70

80

90

100

110

120


70

90

110

130

150

170


70

80

90

100

110

120


Source: Datastream, Barclays Research.


29 April 2014 30

Share price performance Services 25-Apr -1d -5d -10d -30d MTD QTD YTD 1Q 14 4Q 13 3Q 13 2Q 13 1Q 13 4Q 12

Indices & marketsFTSE All 3581 -0.3 0.8 2.1 2.8 1.6 1.6 0.7 -0.9 7.1 9.7 -3.1 2.1 33.8StoxxEuro 321 -1.1 -0.1 0.5 3.4 -0.4 -0.4 2.5 2.9 7.9 14.6 0.0 -0.6 14.5S&P 500 1863 -0.8 -0.1 2.6 1.2 -0.5 -0.5 0.8 1.3 9.1 4.1 2.8 10.0 38.8MSCI EMG 1920 -0.4 0.2 1.3 2.9 0.2 0.2 0.3 0.0 4.9 9.8 -1.7 4.4 19.9

Oil Services - EuropeAker 100 0.5 6.6 11.5 7.7 7.2 7.2 -6.5 -12.8 27.1 2.7 -27.5 -8.2 116.1AMEC 1238 -0.4 4.1 4.3 17.4 11.3 11.3 15.5 3.8 3.6 12.7 -5.2 -1.7 33.9CGG Veritas 12.3 2.5 7.1 3.9 13.3 6.3 6.3 -1.7 -7.5 -25.0 3.7 -2.2 -24.2 75.5Hunting 869 0.5 3.0 1.5 5.6 1.7 1.7 13.0 11.2 -0.4 6.3 -18.0 5.0 93.5Maire Tec 2.63 -0.4 9.6 5.0 43.9 -2.9 -2.9 62.0 66.9 8.5 41.5 -18.2 -10.7 -83.0Petrofac 1443 0.4 2.8 3.4 8.2 1.2 1.2 19.7 18.3 -11.6 23.4 -16.8 -17.5 53.0PGS 71.5 1.1 3.3 0.3 13.0 -2.1 -2.1 1.2 3.4 -5.1 0.4 -21.7 -9.9 111.9Polarcus 4.31 2.7 5.3 1.4 0.0 -7.5 -7.5 -7.1 0.5 19.7 -21.3 -26.2 -8.2 84.1Saipem 19.5 0.8 4.0 9.5 14.2 10.5 10.5 25.8 13.9 -3.2 23.5 -47.3 -20.3 26.0SBM 13.03 -0.7 0.6 -1.4 23.8 -1.0 -1.0 -11.6 -10.7 1.5 15.3 3.2 19.6 -2.5Subsea 7 113 1.6 6.9 5.7 7.3 1.0 1.0 -1.9 -2.9 -8.9 19.3 -25.7 -1.4 70.6Technip 82.3 -1.1 7.6 11.1 21.2 10.2 10.2 18.2 7.2 -18.6 13.5 -1.3 -10.3 102.2Tecnicas 42.6 0.2 3.5 3.6 11.2 4.2 4.2 8.2 3.9 17.0 -1.9 -2.3 1.5 0.6TGS 200 0.9 2.2 3.8 14.4 1.6 1.6 25.7 23.7 -10.6 1.1 -23.6 15.7 187.6Wood Group 792 0.2 4.7 6.5 10.7 4.1 4.1 17.1 12.5 -12.1 3.5 -7.0 11.4 147.9Arithmetic Average 0.6 4.4 4.3 13.2 2.8 2.8 11.2 8.3 -1.2 9.1 -15.3 -3.9 63.9

Source: Datastream, Barclays. The European Market is the Eurostoxx, the European Integrateds, is the corresponding FTSE 300 index. The Barclays European Refining Index is calculated using arithmetic averages for companies under coverage. The Barclays European Services Index is calculated using market capitalisation weighted averaged for companies under coverage. The Barclays E&Ps Index is calculated using a free float weighted average for our coverage.


29 April 2014 31

Share price performance Services 25-Apr -1d -5d -10d -30d MTD QTD YTD 1Q 14 4Q 13 3Q 13 2Q 13 1Q 13 4Q 12

Indices & marketsFTSE All 3581 -0.3 0.8 2.1 2.8 1.6 1.6 0.7 -0.9 7.1 9.7 -3.1 2.1 33.8StoxxEuro 321 -1.1 -0.1 0.5 3.4 -0.4 -0.4 2.5 2.9 7.9 14.6 0.0 -0.6 14.5S&P 500 1863 -0.8 -0.1 2.6 1.2 -0.5 -0.5 0.8 1.3 9.1 4.1 2.8 10.0 38.8MSCI EMG 1920 -0.4 0.2 1.3 2.9 0.2 0.2 0.3 0.0 4.9 9.8 -1.7 4.4 19.9Oil Services - U.S.Baker Hughes 69.7 -0.1 2.0 10.0 12.8 7.2 7.2 26.1 17.7 11.3 5.2 0.9 13.6 -2.1Basic Energy Systems 26.03 -6.8 -7.5 -2.4 10.4 -5.0 -5.0 65.0 73.7 22.0 1.7 -3.7 19.8 52.9Bristow Group 76.2 0.3 2.7 5.3 3.6 0.9 0.9 1.5 0.6 0.8 10.7 0.4 22.9 82.8Cameron Int 64.6 -0.5 1.6 6.5 4.3 4.6 4.6 8.5 3.8 0.6 -4.4 -4.0 15.5 74.2CARBO 135.4 -0.9 -2.5 1.1 14.2 -1.9 -1.9 16.2 18.4 17.3 51.0 -23.4 16.2 7.2Chart industries 75.3 -3.6 -2.1 1.1 -10.4 -5.2 -5.2 -21.3 -16.9 -25.1 27.9 19.7 20.0 332.2Core Laboratories 190.7 -1.7 -11.2 -4.9 -0.7 -3.9 -3.9 -0.1 3.9 11.4 11.8 13.1 26.2 48.2Diamond Off 53.5 3.5 10.5 16.6 21.0 9.7 9.7 -6.0 -14.3 -8.8 -9.4 -0.6 2.4 6.5Dresser-Rand 61.2 0.5 2.4 6.8 11.6 4.8 4.8 2.6 -2.0 -4.8 0.5 -1.3 9.8 78.9Dril-Quip 113.7 -0.5 1.5 5.1 13.4 1.5 1.5 3.5 2.0 -5.4 24.8 5.5 19.3 65.9ENSCO 51.7 0.3 3.4 6.3 6.8 -2.1 -2.1 -9.7 -7.7 5.5 -7.3 -0.9 1.2 47.5Exterran Holdings 43.8 -0.5 0.1 2.7 14.8 -0.1 -0.1 28.2 28.3 21.8 -2.9 9.0 23.2 -15.4FMC Tech 56.8 -0.6 3.6 8.9 10.6 8.6 8.6 8.8 0.2 -7.1 -0.7 3.3 27.0 60.4Global Geophysical 0.10 -5.9 3.5 13.6 -91.7 -12.8 -12.8 -93.5 -92.6 -40.4 -42.0 101.7 -36.4 -43.9Gulfmark Offshore 44.5 0.0 -0.5 4.2 -0.2 -1.0 -1.0 -5.6 -4.6 -7.9 10.4 21.5 13.1 27.7Halliburton 62.9 -1.0 3.2 9.1 13.9 6.7 6.7 23.9 16.0 4.4 13.4 4.5 16.5 38.9Helmerich & Payne 107.0 0.0 -3.5 1.0 9.2 -0.5 -0.5 27.3 27.9 18.6 8.1 4.4 8.4 53.6Hercules Offshore 4.51 3.9 2.3 4.9 0.7 -1.7 -1.7 -30.8 -29.6 -13.2 4.6 -2.6 20.3 151.8Hornbeck Offshore 40.8 -2.0 1.2 7.0 5.2 -2.5 -2.5 -17.2 -15.1 -14.8 5.0 17.6 35.3 124.4ION Geophysical 4.39 -3.5 -5.2 6.6 7.6 4.3 4.3 33.0 27.6 -38.1 -13.9 -9.9 4.6 80.8Key Energy Ser 9.81 -4.0 0.6 1.9 21.7 6.2 6.2 24.2 17.0 5.5 18.0 -21.0 16.3 -24.1Nabors 24.7 0.0 -0.3 5.1 12.4 0.3 0.3 45.6 45.1 2.9 1.5 -2.0 12.2 -18.0National Oilwell 83.5 0.7 1.3 6.8 11.9 7.2 7.2 5.0 -2.1 0.9 12.1 -1.2 3.5 105.6Noble Corp. 31.5 -0.9 3.7 6.0 8.3 -3.8 -3.8 -16.0 -12.6 -2.2 -0.5 -0.7 9.6 6.9Oceaneering 73.7 -2.2 -0.1 5.1 3.8 2.6 2.6 -6.5 -8.9 -3.2 9.1 8.9 23.5 143.8Parker Drilling 6.50 -4.3 -0.3 -4.8 -9.5 -8.3 -8.3 -20.0 -12.8 38.7 13.1 16.4 -7.0 27.1Patterson-UTI 32.2 -0.7 -2.3 4.6 11.9 1.7 1.7 27.3 25.1 15.1 6.0 -15.6 28.0 42.9Rowan Comp 31.3 -0.6 3.0 3.6 -1.3 -7.1 -7.1 -11.5 -4.8 -4.9 6.7 -1.8 13.1 44.2Schlumberger 101.8 0.0 1.8 4.8 14.2 4.4 4.4 12.9 8.2 1.2 21.4 -3.2 8.1 25.4Seacor 83.3 -4.5 -2.9 -0.2 1.7 -3.7 -3.7 -8.7 -5.2 -0.4 7.3 14.6 13.3 20.0Seadrill 208 3.6 2.7 5.0 2.9 -1.9 -1.9 -15.1 -13.5 -10.5 9.1 10.4 -0.6 104.7Superior Energy 32.6 0.0 4.0 9.1 14.8 5.8 5.8 22.3 15.6 4.0 -4.2 4.3 25.3 10.9Tenaris 16.3 0.1 0.9 1.7 8.2 1.9 1.9 2.8 0.8 -7.3 14.9 -1.6 -0.9 17.4Tetra 12.60 -2.3 -3.4 4.6 7.4 -1.6 -1.6 1.9 3.6 -3.4 19.0 6.0 35.2 -13.0Thermon 23.8 -1.0 -2.4 0.3 -4.8 2.8 2.8 -12.8 -15.2 18.4 11.3 -7.4 -1.4 NATidewater 51.8 0.9 5.6 9.1 12.8 6.6 6.6 -12.5 -18.0 0.6 3.9 13.4 13.0 16.6Transocean 42.9 -0.6 5.7 8.7 10.4 3.7 3.7 -13.2 -16.3 9.9 -7.8 -6.1 16.3 -8.7Weatherford 20.5 11.2 12.4 22.0 27.2 17.9 17.9 32.1 12.1 -3.1 10.8 12.8 8.5 -15.4Arithmetic Average -0.6 0.9 5.3 5.6 1.2 1.2 3.1 1.5 0.3 6.5 4.8 13.0 47.5

Source: Datastream, Barclays. The European Market is the Eurostoxx, the European Integrateds, is the corresponding FTSE 300 index. The Barclays European Refining Index is calculated using arithmetic averages for companies under coverage. The Barclays European Services Index is calculated using market capitalisation weighted averaged for companies under coverage. The Barclays E&Ps Index is calculated using a free float weighted average for our coverage.


29 April 2014 32

E&Ps


29 April 2014 33

Valuations E&P - EuropeChange in


Company Rating 25-Apr Price side, % 13F 14F 15F 13F 14F 15F 13F 14F 15F 13F 14F 15F NAV NAV last mnth

E&Ps - EuropeAfren O/W 146 225 54 3.1 4.7 4.3 7.5 9.8 7.8 0.4 (1.5) (0.7) 30.5 31.7 29.2 225 207 7

Africa Oil O/W 48.7 75.0 54 nm nm nm nm nm nm (12) (15) (16) (54) (15.7) 28.0 75 83 1

Bowleven O/W 33 135 312 nm nm nm nm nm nm (15) (2) (5) (3) (3) (7) 135 142 -37

Enquest U/W 131 155 18 4.2 3.4 1.5 9.1 6.7 7.0 (30) 26.9 28.6 0 0.0 (0.2) 155 163 5

Oryx Petroleum O/W 14.9 20.0 34 nm nm nm nm nm nm (0.2) (0.3) (0.3) (0) 0.2 0.7 20 19 0

Premier Oil O/W 327 485 48 6.6 5.7 4.0 12.2 8.8 8.0 (12) (15) 11.3 68 88.1 67.5 485 457 -3

Rockhopper Exploration O/W 98 235 140 nm nm nm nm nm nm (5.3) (12) (4.9) (90) (75.4) (70.3) 235 280 -1

Salamander Energy E/W 124 130 5 4.0 - - nm nm nm (14) (4.8) 9.3 149 154.7 117.3 130 187 -2

Soco International U/W 416 415 (0) 7.5 9.0 8.5 21.3 11.7 10.0 9.0 6.0 8.2 (20) (20.5) (24.6) 415 428 3

Tullow Oil O/W 840 1450 73 20.1 14.1 14.6 70.5 29.4 27.8 (2.9) (7.1) (9) 35 50.9 69.8 1450 1236 -3

Arithmetic average 64 7.6 7.5 6.0 18.4 16.8 11.3 (9) (4.8) (0.6) 6.3 15.5 16.8 21.0 -2Source: Company data, Datastream, Barclays Research - Price targets are based on a sum-of-the-parts based DCF methodology.

Barclays 2014

Cons 2014

EV:EBIDA, x P/E, x FCF yield, % Net Debt/Equity, %EV/2P

x

6.9

- 1.2

18.3

12.9 5.8

7.8

1.1

17.6

-

79.2

EV/2P+2Cx

8.4

-

13.5

20.8 9.2

16.8 15.8

39.9 15.9


29 April 2014 34

Valuations E&P - Europe

EV:EBIDA, x P/E, x Free cash flow yield, %

-10

-5

0

5

10

15

AFR

AO

IL

BLV

N

CN

E

ENQ

OX

C

PMO

RKH

SMR

SIA

TLW


-10

-5

0

5

10

15

AFR

AO

IL

BLV

N

CN

E

ENQ

OX

C

PMO

RKH

SMR

SIA

TLW

P/E 2014 Average

-10

-5

0

5

10

15

AFR

AO

IL

BLV

N

CN

E

ENQ

OX

C

PMO

RKH

SMR

SIA

TLW


Gearing - Net Debt to Equity, % Dollar EPS Growth, y/y % EV:2P, x

-100%-60%-20%20%60%

100%140%180%

AFR

AO

IL

BLV

N

CN

E

ENQ

OX

C

PMO

RKH

SMR

SIA

2013 2014

-150%-100%

-50%0%

50%100%150%200%

AFR

AO

IL

BLV

N

CN

E

ENQ

OX

C

PMO

RKH

SMR

SIA

TLW


0

10

20

30

40

50

AFR

AO

IL

BLV

N

CN

E

ENQ

OX

C

PMO

RKH

SMR

SIA

TLW


EV/2P+2C, x Datastream consensus relative to Barclays NAV, % ROACE, %

0

5

10

15

20

25

AFR

AO

IL

BLV

N

CN

E

ENQ

OX

C

PMO

RKH

SMR

SIA

TLW


-20

-10

0

10

20

AFR

AO

IL

BLV

N

CN

E

ENQ

OX

C

PMO

RKH

SMR

SIA

TLW


-20

-10

0

10

20

30

AFR

AO

IL

BLV

N

CN

E

ENQ

OX

C

PMO

RKH

SMR

SIA

TLW


Source: Datastream


29 April 2014 35

Share price performance E&P - Europe


-5 0 5 10 15 20 25

TLWSIA

BrentAFROXC

SectorENQCNE

BLVNRKH

PMOAOIL

SMDR

-10 -5 0 5 10 15 20

AOILRKHAFR

BrentCNE

BLVNSector

ENQOXC

SIATLWPMO

SMDR

-40 -30 -20 -10 0 10 20

CNERKH

BLVNAOILTLWAFR

SectorENQ

BrentSIA

OXCSMDR

Change in USD share price over last year, % European E&P vs Brent European E&P vs European market

-80 -60 -40 -20 0 20 40

BLVNCNE

SMDRRKHTLWPMOENQ

SectorBrent

AFRSIA

AOIL

80

85

90

95

100

105

110


70

75

80

85

90

95

100

105


Afren vs European E&P Bowleven vs European E&P Cairn Energy vs European E&P

100110120130140150160170180

80

90

100

110

120

130

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14AFR vs Sector AFR, p

20

30

40

50

60

70

80

90

10

30

50

70

90

110

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14BLVN vs Sector BLVN, p

140160180200220240260280300

50

60

70

80

90

100

110

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14CNE vs Sector CNE, p

Source: Datastream, Barclays Research. Relative calculations use the Barclays European E&P Index for the European companies. The index is calculated using free float weighted averages for the E&P companies under coverage.


29 April 2014 36

Share price performance E&P - Europe

Enquest vs European E&P Premier Oil vs European E&P Rockhopper Exploration vs European E&P

90

100

110

120

130

140

150

160

80859095

100105110115120

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14ENQ vs Sector ENQ, p

260280300320340360380400420

65

75

85

95

105

115

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14PMO vs Sector PMO, p

8090100110120130140150160170

60

70

80

90

100

110

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14RKH vs Sector RKH, p

Salamander Energy vs European E&P Soco International vs European E&P Tullow Oil vs European E&P

80

100

120

140

160

180

200

220

40

60

80

100

120

140

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14SMDR vs Sector SMDR, p

280

330

380

430

480

530

9095

100105110115120125130

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14SIA vs Sector SIA, p

600

700

800

900

1000

1100

1200

60

70

80

90

100

110

120

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14TLW vs Sector TLW, p

Source: Datastream, Barclays Research. Relative calculations use the Barclays European E&P Index for the European companies. The index is calculated using free float weighted averages for the E&P companies under coverage


29 April 2014 37

Share price performance E&P-Europe

Tullow Oil vs Cairn Energy Bowleven vs Salamander Energy Cairn Energy vs Premier Oil

50

70

90

110

130

150

170


50

70

90

110

130

150


60

70

80

90

100

110

120

130


Tullow Oil vs Soco International Soco International vs Premier Oil Premier Oil vs Tullow Oil

30

50

70

90

110

130


80

100

120

140

160

180


70

80

90

100

110

120


Afren vs Cairn Energy Afren vs Premier Oil Afren vs Soco International

70

90

110

130

150

170

190

210

230


80

100

120

140

160

180


60

70

80

90

100

110

120




29 April 2014 38

Share price performance E&P - Europe & Israel 25-Apr -1d -5d -10d -30d MTD QTD YTD 1Q 14 4Q 13 3Q 13 2Q 13 1Q 13 4Q 12

Indices & marketsFTSE All 3581 -0.3 0.8 2.1 2.8 1.6 1.6 0.7 -0.9 7.1 9.7 -3.1 2.1 33.8StoxxEuro 321 -1.1 -0.1 0.5 3.4 -0.4 -0.4 2.5 2.9 7.9 14.6 0.0 -0.6 14.5S&P 500 1863 -0.8 -0.1 2.6 1.2 -0.5 -0.5 0.8 1.3 9.1 4.1 2.8 10.0 38.8MSCI EMG 1920 -0.4 0.2 1.3 2.9 0.2 0.2 0.3 0.0 4.9 9.8 -1.7 4.4 19.9

E&P - EuropeAfren 146 -1.6 0.4 7.7 -1.6 4.2 4.2 -12.5 -16.0 26.4 11.6 -9.1 1.0 78.1Africa Oil 8 0.2 4.7 7.7 -5.7 9.0 9.0 -15.8 -22.7 3.5 18.6 -3.3 0.7 549.4BowLeven 32.8 1.6 4.0 -3.2 -2.6 12.9 12.9 -12.5 -22.5 -31.3 1.9 -38.4 36.6 -44.2Cairn Energy 171 -0.2 3.3 3.7 -12.3 3.3 3.3 -35.7 -37.7 5.1 8.9 -7.9 -3.5 -37.3Enquest 131 1.1 2.0 4.4 -9.0 6.6 6.6 -1.1 -7.3 6.8 16.9 -18.0 11.8 34.4Premier Oil 327 4.3 6.4 5.6 8.7 11.7 11.7 5.7 -5.3 -2.2 2.1 -14.7 7.9 18.1Rockhopper Exploration 98 4.9 4.0 0.5 -7.9 -0.9 -0.9 -35.7 -35.1 21.3 9.8 -18.6 -8.7 -41.1Salamander Energy 124 4.7 19.5 21.3 23.2 23.4 23.4 12.9 -8.6 2.7 -15.2 -31.0 2.2 11.1Soco International 416 -0.4 -0.8 2.5 0.3 6.0 6.0 7.0 0.9 1.5 32.2 -7.4 -2.0 0.2Tullow Oil 840 -2.4 -3.2 2.1 9.2 13.1 13.1 -0.3 -11.9 -15.2 3.8 -19.0 -8.8 36.8Arithmetic Average 0.9 3.0 4.4 -0.8 7.0 7.0 -12.5 -18.8 0.3 8.3 -14.4 3.2 82.0E&P - IsraelAvner 3.51 0.1 0.5 -0.2 7.3 4.3 4.3 10.2 3.3 10.0 15.8 -3.6 4.5 58.7Delek Drilling 20.0 -0.1 0.1 0.3 7.6 4.2 4.2 9.7 2.5 4.9 19.7 -4.6 4.9 61.8Delek Energy Systems 2422 0.0 0.2 0.8 3.4 8.2 8.2 1.1 -9.1 3.7 37.0 3.6 5.3 68.7Isramco Negev 0.73 0.6 -0.7 -1.7 1.0 0.0 0.0 5.3 3.8 9.4 7.2 -6.4 9.1 38.4Ratio Oil 0.52 -0.2 2.7 4.0 7.8 4.4 4.4 16.1 8.1 6.6 30.4 -1.8 0.3 65.8Arithmetic Average 0.1 0.6 0.6 5.4 4.2 4.2 8.5 1.7 6.9 22.0 -2.6 4.8 58.7

Source: Datastream, Barclays Research. The European E&P Sector is the corresponding Euro Stoxx indices and the US E&P Sector is the corresponding S&P 500 indices.


29 April 2014 39

Share price performance E&P – Canada 25-Apr -1d -5d -10d -30d MTD QTD YTD 1Q 14 4Q 13 3Q 13 2Q 13 1Q 13 4Q 12

Indices & marketsFTSE All 3581 -0.3 0.8 2.1 2.8 1.6 1.6 0.7 -0.9 7.1 9.7 -3.1 2.1 33.8StoxxEuro 321 -1.1 -0.1 0.5 3.4 -0.4 -0.4 2.5 2.9 7.9 14.6 0.0 -0.6 14.5S&P 500 1863 -0.8 -0.1 2.6 1.2 -0.5 -0.5 0.8 1.3 9.1 4.1 2.8 10.0 38.8MSCI EMG 1920 -0.4 0.2 1.3 2.9 0.2 0.2 0.3 0.0 4.9 9.8 -1.7 4.4 19.9E&P - (Canada)ARC Resources 32.3 -0.8 -2.4 0.3 12.0 6.3 6.3 5.4 -0.9 9.4 -2.5 -0.7 7.6 32.4Athabasca 8.3 -1.1 -0.6 2.5 -0.4 3.8 3.8 22.8 18.3 -18.5 23.2 -28.4 -14.8 1.4Baytex Energy 45.7 -0.8 -2.0 -0.8 6.9 0.4 0.4 5.7 5.2 -4.8 14.6 -14.3 -2.7 44.0BlackPearl Resources 3.0 -0.4 0.0 1.0 28.3 14.2 14.2 27.3 11.5 16.1 20.8 -34.2 -24.6 14.8Bonavista Energy 17.1 -2.2 -1.5 0.1 9.6 5.8 5.8 18.3 11.8 4.9 -3.2 -11.4 -1.2 -30.6Canadian Natural Res 44.7 -0.8 -0.6 2.4 12.9 5.5 5.5 19.7 13.5 6.4 11.6 -11.7 11.5 -13.4Canadian Oil Sands 23.3 -3.7 -2.8 2.4 9.2 0.3 0.3 12.1 11.7 -2.2 4.7 -10.6 1.8 -20.2Crescent Point 44.0 -1.3 -1.5 3.9 9.2 9.1 9.1 2.7 -5.8 2.1 11.7 -10.5 -0.1 8.2Enerplus 24.0 -0.7 -1.0 2.4 15.7 8.6 8.6 19.7 10.2 8.4 12.1 2.0 12.8 -39.8Legacy Oil & Gas 8.6 -2.3 0.3 7.4 31.8 17.7 17.7 34.4 14.2 -10.6 36.6 -12.8 -22.1 -36.2Lightstream 6.6 -1.7 -2.7 5.0 20.8 17.7 17.7 8.3 -8.0 -25.3 -3.4 -12.5 -15.6 -48.3Oryx Petroleum 14.9 0.7 -0.2 -0.1 2.9 3.8 3.8 2.3 -1.4 -5.1 4.9 NA NA NAParamount Resources 57.7 0.1 0.4 7.8 28.0 21.2 21.2 43.1 18.1 3.1 3.1 -6.1 14.9 84.0Pengrowth Energy 6.9 -0.7 -1.9 1.1 2.8 3.7 3.7 1.6 -2.0 3.7 19.8 -3.2 2.6 -45.7Penn West Petroleum 9.9 -1.2 -4.9 3.4 8.2 6.7 6.7 7.0 0.3 -26.9 5.2 -0.8 -0.9 -43.2Petrobank Energy 0.5 0.0 -4.4 11.1 15.2 23.8 23.8 29.4 4.5 -17.0 -11.7 -32.0 -36.1 -35.9Peyto E&P 39.6 -0.5 -1.7 1.5 13.2 5.1 5.1 17.3 11.7 3.8 2.3 9.2 14.9 68.6Trilogy Energy 30.9 -0.1 -2.8 3.7 15.1 14.1 14.1 7.9 -5.4 -5.6 -4.6 2.6 -1.4 235.1Vermilion Energy 71.6 -0.6 -0.6 0.8 13.5 3.8 3.8 10.6 6.6 5.3 12.5 -5.7 -0.8 64.9Whitecap Resources 14.1 -0.9 -0.4 5.6 22.7 14.1 14.1 7.2 -6.0 1.4 13.2 8.1 9.6 84.8Arithmetic Average -1.0 -1.6 3.1 13.9 9.3 9.3 15.1 5.4 -2.6 8.5 -9.1 -2.4 17.1



29 April 2014 40

Share price performance E&P – US Local Price


Indices & marketsFTSE All 3581 -0.3 0.8 2.1 2.8 1.6 1.6 0.7 -0.9 7.1 9.7 -3.1 2.1 33.8StoxxEuro 321 -1.1 -0.1 0.5 3.4 -0.4 -0.4 2.5 2.9 7.9 14.6 0.0 -0.6 14.5S&P 500 1863 -0.8 -0.1 2.6 1.2 -0.5 -0.5 0.8 1.3 9.1 4.1 2.8 10.0 38.8MSCI EMG 1920 -0.4 0.2 1.3 2.9 0.2 0.2 0.3 0.0 4.9 9.8 -1.7 4.4 19.9E&P - USAnadarko 99.5 -0.7 0.5 3.1 21.3 17.4 17.4 25.4 6.9 -15.1 7.1 -0.5 17.7 99.9Apache 87.3 -0.8 2.5 6.3 10.2 5.2 5.2 1.6 -3.5 -0.6 2.2 9.3 -1.7 -6.2Bill Barrett 24.1 -2.7 -1.5 3.6 -0.8 -5.8 -5.8 -10.0 -4.4 3.6 22.5 0.6 13.9 -41.6Cabot Oil & Gas 38.2 0.6 9.3 17.8 12.4 12.7 12.7 -1.5 -12.6 4.5 5.7 6.4 35.9 218.0Chesapeake 28.8 -1.4 2.2 10.1 15.1 12.4 12.4 6.1 -5.6 3.4 24.6 0.1 22.8 -20.2Cimarex 119.4 -2.6 -1.3 4.8 6.7 0.3 0.3 13.9 13.5 6.0 45.2 -11.7 30.7 -17.7Comstock 26.6 -4.5 0.7 13.2 39.9 16.3 16.3 45.3 24.9 13.7 -0.6 -0.3 7.5 -44.7Concho Resources 128.7 -3.7 -3.4 2.7 8.7 5.1 5.1 19.2 13.4 -5.0 29.6 -14.0 20.9 49.1Denbury Resources 17.1 -1.2 -1.0 4.2 4.9 4.0 4.0 3.8 -0.2 -12.7 5.7 -4.8 15.1 11.7Devon 70.4 -2.1 -0.4 4.2 12.2 5.2 5.2 13.8 8.2 5.6 10.5 -6.6 8.4 -14.2Encana 22.6 -1.6 -3.2 0.9 11.9 5.8 5.8 25.4 18.4 4.0 2.5 -11.9 -1.5 -35.1EOG Resources 99.0 -4.3 -3.3 0.4 6.5 1.0 1.0 18.0 16.9 -2.5 25.1 2.5 6.0 21.9Exco Resources 5.9 -0.3 -5.1 1.4 15.0 5.7 5.7 11.5 5.5 -21.9 -9.2 10.1 5.3 -54.6Forest Oil 1.9 -2.1 -3.1 2.2 10.0 -2.1 -2.1 -48.2 -47.1 -43.5 47.7 -18.0 -21.4 -65.2Gulfport Energy Corp. 71.8 -4.5 -4.4 -3.0 10.4 0.9 0.9 13.7 12.8 -4.0 34.3 3.7 19.9 219.0Jones Energy 15.0 -2.3 -2.9 0.3 6.0 -1.0 -1.0 3.5 4.6 -13.3 NA NA NA NAKosmos 10.9 -0.7 -0.7 4.1 3.0 -0.7 -0.7 -2.3 -1.6 7.3 -1.2 -9.8 -8.5 NAMarathon Oil 36.1 -0.8 -1.8 2.9 9.1 1.6 1.6 2.2 0.6 0.7 0.1 2.9 10.0 63.7Newfield Exploration 31.8 -3.7 -4.5 -0.9 14.8 1.2 1.2 28.9 27.3 -11.7 13.3 8.9 -16.3 -44.0Noble Energy 72.8 -2.9 -2.2 4.8 9.2 2.5 2.5 6.9 4.3 0.2 11.9 3.5 13.7 66.2Occidental 96.4 -0.8 -0.2 3.3 -0.2 1.1 1.1 1.3 0.2 0.8 3.9 13.0 2.3 -0.2Penn Virginia NA NA NA NA NA NA NA NA NA NA NA NA NA NAPioneer Natural 192.0 -2.7 -5.5 3.1 3.1 2.6 2.6 4.3 1.7 -5.3 26.9 17.8 16.6 80.9QEP Resources 31.2 -3.1 -3.5 1.3 9.6 5.9 5.9 1.7 -3.9 8.5 -1.6 -11.4 5.2 3.3Quicksilver 3.1 3.7 0.7 11.2 15.4 16.7 16.7 0.0 -14.3 41.5 18.0 -35.4 -21.3 -74.5Range Resources 91.7 -2.0 -1.3 4.3 4.6 10.6 10.6 8.8 -1.6 11.0 -1.6 -3.8 29.0 56.3Resolute 7.4 -5.5 -6.1 3.2 -4.2 2.4 2.4 -18.4 -20.3 6.5 3.9 -29.5 41.6 -34.7Sandridge 6.7 -3.6 -1.3 9.2 5.0 8.5 8.5 9.7 1.2 -1.6 21.3 -8.5 -17.0 7.3SM Energy 78.5 -1.0 2.0 8.0 11.9 10.1 10.1 -5.5 -14.2 6.3 27.4 1.7 13.4 30.0Southwestern Energy 47.8 -1.2 -2.3 2.5 8.4 3.9 3.9 21.5 17.0 8.4 -0.9 -1.2 11.5 -14.0Stone Energy 44.7 -3.4 -3.5 2.3 27.9 6.6 6.6 29.3 21.3 3.2 43.4 3.0 6.0 81.9Swift Energy 11.3 -2.3 -4.0 9.0 16.8 4.7 4.7 -16.5 -20.3 11.9 -5.4 -16.4 -3.8 -42.1Talisman 11.7 -1.3 -3.3 1.0 7.9 5.9 5.9 -9.1 -14.1 -3.2 0.6 -7.3 8.2 -25.3Ultra Petroleum 29.4 -2.3 0.1 7.7 19.4 9.3 9.3 35.8 24.2 4.0 3.7 0.3 10.9 -59.3W&T Offshore 18.7 -3.1 -1.9 3.5 24.0 8.0 8.0 16.9 8.2 -11.5 21.7 5.0 -11.4 74.4Whiting PTL 72.5 -3.9 -3.1 2.3 5.5 4.5 4.5 17.2 12.2 0.2 27.3 -8.4 17.2 12.0WPX Energy 21.0 -2.6 3.7 11.8 19.6 16.6 16.6 3.2 -11.5 4.8 1.7 19.7 7.7 NAArithmetic Average -2.1 -1.5 4.8 11.9 5.9 5.9 8.7 2.5 -0.5 12.7 -3.9 8.6 15.2



29 April 2014 41

Global Emerging Market Oils


29 April 2014 42

Valuations GEM Change in



Integrated - RussiaBashneft E/W 59.4 71.0 20 5.1 4.0 3.3 7.8 5.0 4.1 17.5 15.9 18.6 10.6 12.0 13.4 18.7 24.5 24.5 11.88 10.21 2

Gazprom O/W 7.0 9.5 36 2.3 2.5 2.5 2.2 2.3 2.4 4.7 8.2 10.6 5.8 6.2 10.1 12.2 9.0 9.0 1.49 1.39 1

Gazprom Neft O/W 18.9 25.0 32 2.9 3.0 3.2 3.4 3.1 3.3 5.2 (7.5) (0.0) 7.4 8.0 7.6 18.0 13.6 13.6 1.22 1.24 1

Lukoil E/W 51.1 70.0 37 2.6 2.1 1.6 3.7 3.7 3.6 5.4 5.9 15.6 6.2 7.1 8.1 12.8 11.1 11.1 13.72 14.09 1

Novatek O/W 96 140 45 9.1 7.0 6.1 9.7 7.6 6.9 3.6 5.5 6.8 3.1 4.0 3.6 24.0 24.7 24.7 1.28 1.06 0

Rosneft U/W 6.2 7.3 16 5.4 4.8 4.7 5.5 4.7 5.0 (5.0) 11.7 8.3 6.0 5.3 5.0 11.6 8.5 8.5 1.32 1.35 1

Surgutneftegas U/W 6.9 7.3 6 (0.9) (1.2) (1.6) 3.1 2.9 3.7 28.0 24.6 15.3 3.4 4.0 3.2 21.5 18.7 18.7 0.24 0.19 -2

Tatneft E/W 34.6 40.0 16 4.0 3.4 3.1 5.4 4.7 4.8 13.2 13.9 14.5 4.7 5.3 5.3 16.1 15.8 15.8 1.22 1.09 0

Arithmetic average 26 3.8 3.2 2.9 5.1 4.3 4.2 9.1 9.8 11.2 5.9 6.5 7.1 16.9 15.7 15.7 1

Integrated - OtherPetrobras E/W 14 20 48 7.9 8.0 6.5 7.9 7.7 5.5 (21) (12) (4.3) 3.0 4.5 4.9 4.9 5.0 6.4 1.75 1.70 -5

Sasol O/W 587 650 11 11.0 12.0 10.7 4.5 0.4 (10.6) 4.5 0.4 (11) 3.2 4.1 4.4 18.5 16.9 16.6 55.18 57.29 0

Arithmetic average 29 9.4 10.0 8.6 6.2 4.1 (2.6) (8) (5.8) (7.4) 3.1 4.3 4.7 11.7 11.0 11.5 -2

ServicesC.A.T. Oil E/W 14.7 8.0 (45) 8.6 7.6 6.3 2.4 1.8 1.4 0.3 0.3 0.9 0.0 0.0 0.0 8.6 12.3 12.3 0.95 0.97 0

COSL O/W 19.7 25.8 31 2.9 2.7 2.7 14.7 14.4 14.1 8.3 9.0 9.0 1.4 1.4 1.4 8.4 7.4 7.4 1.38 1.93 1

Eurasia Drilling O/W 24.5 42.0 71 3.4 2.3 1.2 nm nm nm 8.3 10.1 13.0 0.0 0.0 0.0 20.7 18.0 18.0 4.08 2.67 -1

Integra O/W 19.3 4.5 (77) 19.7 15.7 13.3 0.5 0.3 0.2 2.4 3.6 4.5 0.0 0.0 0.0 15.5 21.8 21.8 0.59 3.35 nm

Arithmetic average (5) 8.6 7.1 5.9 5.9 5.5 5.2 4.8 5.7 6.8 0.3 0.3 0.4 13.3 14.9 14.9 0

Source: Company data, Datastream, Barclays Research - Price targets are based on a sum-of-the-parts based DCF methodology.

Barclays 2014

Cons 2014

RoACE, %EV:EBIDA, x P/E, x Dividend yield, %FCF yield, %


29 April 2014 43

Valuations GEM


-5

0

5

10

15

BASH

GA

ZP

GA

ZN

LKO

H

NV

TK

ROSN

SRG

T

TATN

PBRA

SASL


02468

1012

BASH

GA

ZP

GA

ZN

LKO

H

NV

TK

ROSN

SRG

T

TATN

PBRA

SASL

P/E 2014 Average

02468

101214

BASH

GA

ZP

GA

ZN

LKO

H

NV

TK

ROSN

SRG

T

TATN

PBRA

SASL


Free cash flow yield, % Gearing - Net Debt to Equity, % Datastream consensus e relative to Barclays EPS,%

-10

0

10

20

30

BASH

GA

ZP

GA

ZN

LKO

H

NV

TK

ROSN

SRG

T

TATN

PBRA

SASL


-100

-50

0

50

100

BASH

GA

ZP

GA

ZN

LKO

H

NV

TK

ROSN

SRG

T

TATN

PBRA

SASL

2013 2014

-10-505

10152025

BASH

GA

ZP

GA

ZN

LKO

H

NV

TK

ROSN

SRG

T

TATN

PBRA

SASL


EV/Capital Employed, x ROACE, % Dollar EPS Growth y/y , %

-1.0-0.50.00.51.01.52.02.5

BASH

GA

ZP

GA

ZN

LKO

H

NV

TK

ROSN

SRG

T

TATN

PBRA

SASL


05

1015202530

BASH

GA

ZP

GA

ZN

LKO

H

NV

TK

ROSN

SRG

T

TATN

PBRA

SASL


-20%

0%

20%

40%

60%

BASH

GA

ZP

GA

ZN

LKO

H

NV

TK

ROSN

SRG

T

TATN

PBRA

SASL


Source: Datastream


29 April 2014 44

Share price performance GEM


-5 -4 -3 -2 -1 0 1

NVTK

GAZN

GAZ

ROSN

SUR

LKOH

PBR

TAT

BAN

SOL

-10 -5 0 5 10 15 20

NVTK

GAZ

GAZN

ROSN

SUR

LKOH

SOL

TAT

BAN

PBR

-30 -20 -10 0 10 20

NVTK

GAZ

SUR

ROSN

GAZN

LKOH

TAT

BAN

SOL

PBR

Change in USD share price over last year, % Russian Oils vs Brent Russian Oils vs Market

-40 -20 0 20 40 60

PBR

SUR

LKOH

GAZ

ROSN

GAZN

NVTK

TAT

BAN

SOL

70

75

80

85

90

95

100

105

110


80

90

100

110


Source: Datastream, Barclays Research. The Asian Market is the Hang Seng Index, the Asian sector, is the corresponding OILSGSAJ index.


29 April 2014 45

Share price performance Russia

RTS vs Urals Sector vs RTS Gazprom vs RTS

70

75

80

85

90

95

100

105

110


80859095

100105110115120125


4

5

6

7

8

9

10

11

70

80

90

100

110

120


GAZP vs RTS GAZP, $

Lukoil vs RTS Rosneft vs RTS Novatek vs RTS

40

50

60

70

80

80

85

90

95

100

105

110


LKOH vs RTS LKOH, $

4

6

8

10

70

80

90

100

110

120

130


ROSN vs RTS ROSN, $

60708090100110120130140150

60708090

100110120130140


NVTK vs RTS NVTK, $

Rosneft vs Lukoil Novatek vs Sector Gazprom vs Novatek

70

80

90

100

110

120

130


80

90

100

110

120

130

140


60

70

80

90

100

110


Source: Datastream, Barclays Research. Relative calculations use the Russia RTS index.


29 April 2014 46

Share price performance Russia

CAT Oil vs Russian Oil Services Eurasia Drilling vs Russian Oil Services Integra vs Russian Oil Services

0

5

10

15

20

25

30

60

80

100

120

140

160

180

200


CAT vs Sector CAT, E

20

25

30

35

40

45

50

40

50

60

70

80

90

100

110


EDCL vs Sector EDCL, $

0

5

10

15

20

25

5

1,005

2,005

3,005

4,005

5,005

6,005


INTE vs Sector INTE, $

CAT Oil vs Brent Eurasia Drilling vs Brent Integra vs Brent

80

130

180

230

280

330


60

70

80

90

100

110

120


1,010

2,010

3,010

4,010

5,010

6,010

7,010


CAT Oil vs Eurasia Eurasia vs Integra Integra vs CAT

60

110

160

210

260

310

360


20

40

60

80

100

120

140


505

1,005

1,505

2,005

2,505

3,005

3,505

4,005




29 April 2014 47

Share price performance GEM

Local Price25-Apr -1d -5d -10d -30d MTD QTD YTD 1Q 14 4Q 13 3Q 13 2Q 13 1Q 13 4Q 12

Indices & marketsFTSE All 3581 -0.3 0.8 2.1 2.8 1.6 1.6 0.7 -0.9 7.1 9.7 -3.1 2.1 33.8StoxxEuro 321 -1.1 -0.1 0.5 3.4 -0.4 -0.4 2.5 2.9 7.9 14.6 0.0 -0.6 14.5S&P 500 1863 -0.8 -0.1 2.6 1.2 -0.5 -0.5 0.8 1.3 9.1 4.1 2.8 10.0 38.8MSCI EMG 1920 -0.4 0.2 1.3 2.9 0.2 0.2 0.3 0.0 4.9 9.8 -1.7 4.4 19.9MSCI Russia 661 -2.4 -6.7 -7.8 3.4 -9.9 -9.9 -23.9 -15.5 -1.3 13.3 -11.3 -3.5 18.9Integrated - RussiaBashneft 2120 -0.8 0.6 3.3 17.2 7.7 7.7 -3.3 -10.2 2.7 4.4 -10.2 7.2 63.5Gazprom 6.99 -2.0 -4.0 -6.9 6.1 -9.2 -9.2 -18.3 -9.9 -5.3 33.9 -23.0 -9.6 2.7Gazprom Neft 18.9 -2.4 -4.0 -6.2 1.7 -8.2 -8.2 -16.3 -8.9 1.8 21.3 -15.6 -9.0 30.2Lukoil 51.1 -1.9 -2.5 -4.2 -0.9 -8.1 -8.1 -18.3 -11.0 -1.8 9.3 -10.9 -2.7 32.3Novatek 96.5 -1.4 -4.4 -5.4 -3.3 -12.3 -12.3 -29.5 -19.7 3.9 10.8 10.9 -10.0 67.3Rosneft 6.23 -1.5 -3.1 -4.5 -0.6 -6.4 -6.4 -18.2 -12.6 -6.8 16.7 -10.2 -14.4 50.5Surgutneftegas 6.88 -1.7 -2.6 -6.0 -3.0 -6.7 -6.7 -20.4 -14.7 -0.7 10.6 -12.3 1.6 4.4Tatneft 34.6 -2.0 -1.8 -6.5 9.2 1.0 1.0 -9.5 -10.4 -3.5 6.4 -8.2 -9.2 60.2Arithmetic Average -1.7 -2.7 -4.6 3.3 -5.3 -5.3 -16.7 -12.2 -1.2 14.2 -9.9 -5.8 38.9

Integrated - OtherPetrobras 13.5 -1.7 -3.6 -3.8 30.2 2.7 2.7 -2.0 -4.6 -11.8 16.6 -18.3 -14.9 -42.1Sasol 587 -0.6 -1.1 0.4 4.6 -1.7 -1.7 12.2 14.1 2.9 7.8 -2.0 3.8 22.5Arithmetic Average -1.2 -2.4 -1.7 17.4 0.5 0.5 5.1 4.8 -4.5 12.2 -10.2 -5.5 -9.8ServicesC.A.T. Oil 14.65 -6.6 -1.7 3.2 4.9 -4.7 -4.7 -27.8 -24.2 48.1 21.6 26.7 37.6 1.9China Oilfield Systems 19.7 3.5 7.2 -2.5 7.0 8.5 8.5 -17.9 -24.4 23.7 28.1 -6.6 1.6 74.5Eurasia Drilling 24.5 -1.0 3.4 2.9 18.0 -4.4 -4.4 -45.6 -43.0 13.1 3.9 5.2 -0.6 87.9Integra 19.25 0.0 7.0 7.0 60.4 13.2 13.2 14.2 0.9 16.7 4713.3 -16.3 -10.7 -81.6Arithmetic Average -1.0 4.0 2.6 22.6 3.2 3.2 -19.3 -22.7 25.4 1191.7 2.3 7.0 20.7

Source: Datastream, Barclays Research. The Asian Market is the Hang Seng Index, the Asian sector, is the corresponding OILSGSAJ index


29 April 2014 48

ANALYST(S) CERTIFICATION(S):

We, Lydia Rainforth, CFA, Paul Y. Cheng, CFA, Mick Pickup, Alessandro Pozzi, Matthew Thomas, Caroline Learmonth and Somshankar Sinha,hereby certify (1) that the views expressed in this research report accurately reflect our personal views about any or all of the subject securities orissuers referred to in this research report and (2) no part of our compensation was, is or will be directly or indirectly related to the specificrecommendations or views expressed in this research report.

IMPORTANT DISCLOSURES CONTINUED

Barclays Research is a part of the Corporate and Investment Banking division of Barclays Bank PLC and its affiliates (collectively and eachindividually, "Barclays"). For current important disclosures regarding companies that are the subject of this research report, please send a writtenrequest to: Barclays Research Compliance, 745 Seventh Avenue, 14th Floor, New York, NY 10019 or refer to http://publicresearch.barclays.comor call 212-526-1072.

The analysts responsible for preparing this research report have received compensation based upon various factors including the firm's totalrevenues, a portion of which is generated by investment banking activities.

Research analysts employed outside the US by affiliates of Barclays Capital Inc. are not registered/qualified as research analysts with FINRA.These analysts may not be associated persons of the member firm and therefore may not be subject to NASD Rule 2711 and incorporated NYSERule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst’saccount.

Analysts regularly conduct site visits to view the material operations of covered companies, but Barclays policy prohibits them from acceptingpayment or reimbursement by any covered company of their travel expenses for such visits.

In order to access Barclays Statement regarding Research Dissemination Policies and Procedures, please refer tohttps://live.barcap.com/publiccp/RSR/nyfipubs/disclaimer/disclaimer-research-dissemination.html. In order to access Barclays ResearchConflict Management Policy Statement, please refer to: http://group.barclays.com/corporates-and-institutions/research/research-policy.

The Corporate and Investment Banking division of Barclays produces a variety of research products including, but not limited to, fundamentalanalysis, equity-linked analysis, quantitative analysis, and trade ideas. Recommendations contained in one type of research product may differfrom recommendations contained in other types of research products, whether as a result of differing time horizons, methodologies, orotherwise.

Materially Mentioned Stocks (Ticker, Date, Price)

Afren Plc (AFRE.L, 28-Mar-2014, GBP 1.42), Overweight/Positive, F/J

Africa Oil Corp. (AOIC.ST, 28-Mar-2014, SEK 43.30), Overweight/Positive, J

Aker Solutions (AKSO.OL, 28-Mar-2014, NOK 93.50), Underweight/Positive, D/J/K/L/M/N

Alon USA Energy (ALJ, 28-Mar-2014, USD 14.48), Underweight/Positive, A/C/D/J/L/O

Bashneft (BANE.MM, 28-Mar-2014, USD 53.65), Equal Weight/Neutral, D/J/K/L/M/N

BG Group (BG.L, 28-Mar-2014, GBP 11.12), Equal Weight/Positive, C/D/J/K/L/M/N

Bowleven PLC (BLVN.L, 28-Mar-2014, GBP 0.30), Overweight/Positive, A/D/F/J/K/L/N/Q

BP (BP.L, 28-Mar-2014, GBP 4.84), Underweight/Positive, A/C/D/F/G/J/K/L/M/N

C.A.T. Oil AG (O2C.DE, 28-Mar-2014, EUR 14.57), Equal Weight/Positive, J

CGG (GEPH.PA, 28-Mar-2014, EUR 11.20), Underweight/Positive, D/J/K/L/N

Chevron Corporation (CVX, 28-Mar-2014, USD 118.50), Equal Weight/Positive, A/C/D/E/J/K/L/M/N/O

China Oilfield Services (COSL) (2883.HK, 28-Mar-2014, HKD 18.44), Overweight/Positive, D/J/K/L/M/N

ConocoPhillips (COP, 28-Mar-2014, USD 70.35), Overweight/Positive, C/D/J/K/L/M/N

Delek US Holdings Inc. (DK, 28-Mar-2014, USD 28.43), Overweight/Positive, A/C/D/J/K/L/M/N/O

Eni (ENI.MI, 28-Mar-2014, EUR 18.18), Equal Weight/Positive, A/D/J/K/L/M/N

Enquest (ENQ.L, 28-Mar-2014, GBP 1.26), Underweight/Positive, D/J/K/L/N

Essar Energy (ESSR.L, 28-Mar-2014, GBp 67.2), Rating Suspended/Negative, D/E/J/K/L/M/N

Eurasia Drilling Co., Ltd. (EDCLq.L, 28-Mar-2014, USD 24.90), Overweight/Positive, J

Exxon Mobil Corp. (XOM, 28-Mar-2014, USD 97.70), Equal Weight/Positive, A/C/D/E/J/K/L/M/N/O

Other Material Conflicts: The Corporate and Investment Banking Division of Barclays is providing investment banking services to ExxonMobilInternational Holdings Inc and ExxonMobil Energy Limited, both fully-owned subsidiaries of Exxon Mobil Corporation in relation to their proposedsale of an interest in Castle Peak Power Company Limited and in Hong Kong Pumped Storage Development Company Limited.

Galp Energia (GALP.LS, 28-Mar-2014, EUR 12.40), Overweight/Positive, D/J/L

Gazprom (GAZPq.L, 28-Mar-2014, USD 7.38), Overweight/Neutral, D/J/K/L/M/N

Gazprom Neft (SIBNq.L, 28-Mar-2014, USD 20.24), Overweight/Neutral, A/D/J/K/L/M/N

Grupa Lotos (LTSP.WA, 28-Mar-2014, PLN 36.80), Equal Weight/Negative, J/K/M


29 April 2014 49


Hellenic Petroleum (HEPr.AT, 28-Mar-2014, EUR 7.28), Equal Weight/Negative, D/E/J/K/L/M

Other Material Conflicts: The Corporate and Investment Banking division of Barclays is providing investment banking services to HellenicPetroleum SA in relation to the potential sale of their stake in DESFA SA to the State Oil Company of the Azerbaijan Republic (SOCAR). The rating,price target and estimates for Hellenic Petroleum do not incorporate the impact of this potential transaction.

Hess Corp. (HES, 28-Mar-2014, USD 83.22), Overweight/Positive, C/D/J/K/L/M/N

Hunting (HTG.L, 28-Mar-2014, GBp 841.5), Overweight/Positive, D/J/K/L/N/Q

Integra Group (INTEq.L, 28-Mar-2014, USD 17.00), Overweight/Positive, J

Lukoil (LKOHyq.L, 28-Mar-2014, USD 53.15), Equal Weight/Neutral, J/K/N

Maire Tecnimont (MTCM.MI, 28-Mar-2014, EUR 2.54), Overweight/Positive, A/D/J/L

Other Material Conflicts: The Corporate and Investment Banking Division of Barclays Bank Plc is providing equity advisory services to MaireTecnimont SPA

MOL (MOLB.BU, 28-Mar-2014, HUF 12600.00), Underweight/Positive, D/J/L

Motor Oil (MORr.AT, 28-Mar-2014, EUR 9.38), Overweight/Negative, J

Murphy Oil (MUR, 28-Mar-2014, USD 62.75), Equal Weight/Positive, C/D/J/K/L/N

Neste Oil (NES1V.HE, 28-Mar-2014, EUR 14.58), Underweight/Negative, D/J/K/L/M/N

Novatek (NVTKq.L, 28-Mar-2014, USD 103.30), Overweight/Neutral, A/D/J/K/L/M

OMV (OMVV.VI, 28-Mar-2014, EUR 32.44), Underweight/Positive, D/J/K/L/M/N

Oryx Petroleum Corp., Ltd. (OXC.TO, 28-Mar-2014, CAD 14.50), Overweight/Positive, A/D/J/L/R

Petrofac (PFC.L, 28-Mar-2014, GBP 14.16), Underweight/Positive, A/C/D/J/K/L/M

Petroleo Brasileiro S.A. (PBR, 28-Mar-2014, USD 13.18), Equal Weight/Positive, C/D/J/K/L/M

Petroleo Brasileiro S.A. (PBRA, 28-Mar-2014, USD 13.90), Equal Weight/Positive, C/D/J/K/L/M

Petroleum Geo-Services (PGS.OL, 28-Mar-2014, NOK 70.80), Overweight/Positive, D/J/K/L/M/N

PKN Orlen (PKN.WA, 28-Mar-2014, PLN 42.09), Underweight/Negative, D/J/L

Polarcus (PLCS.OL, 28-Mar-2014, NOK 4.54), Equal Weight/Positive, J

Premier Oil (PMO.L, 28-Mar-2014, GBP 2.92), Overweight/Positive, A/D/F/J/K/L/M/N

Repsol (REP.MC, 28-Mar-2014, EUR 18.61), Equal Weight/Positive, A/D/J/K/L/M/N

Rockhopper Exploration (RKH.L, 28-Mar-2014, GBP 1.00), Overweight/Positive, F/J/K/N

Rosneft (ROSNq.L, 28-Mar-2014, USD 6.48), Underweight/Neutral, D/J/K/L/M/N

Royal Dutch Shell A (RDSa.L, 28-Mar-2014, GBP 21.94), Overweight/Positive, A/C/D/E/J/K/L/M/N

Royal Dutch Shell B (RDSb.L, 28-Mar-2014, GBP 23.40), Overweight/Positive, A/C/D/E/J/K/L/M/N

Saipem (SPMI.MI, 28-Mar-2014, EUR 17.19), Equal Weight/Positive, D/J/K/L/M/N

Salamander Energy (SMDR.L, 28-Mar-2014, GBP 1.05), Equal Weight/Positive, J

Saras (SRS.MI, 28-Mar-2014, EUR 1.30), Underweight/Negative, D/J/K/L/M/N

Sasol Limited (SOLJ.J, 28-Mar-2014, ZAR 595.30), Overweight/Neutral, C/D/J/K/L/M/N/O

SBM Offshore (SBMO.AS, 28-Mar-2014, EUR 12.60), Overweight/Positive, C/J

Soco International (SIA.L, 28-Mar-2014, GBP 4.02), Underweight/Positive, J

Statoil ASA (STL.OL, 28-Mar-2014, NOK 169.50), Overweight/Positive, A/D/J/K/L/M/N

Subsea 7 SA (SUBC.OL, 28-Mar-2014, NOK 109.50), Overweight/Positive, D/J/K/L/M/N

Surgutneftegas (SNGSyq.L, 28-Mar-2014, USD 7.16), Underweight/Neutral, J

Tatneft (TATNxq.L, 28-Mar-2014, USD 33.58), Equal Weight/Neutral, J/K/M

Technip (TECF.PA, 28-Mar-2014, EUR 75.00), Overweight/Positive, C/D/J/K/L/M/N

Other Material Conflicts: The Corporate and Investment Banking Division of Barclays Bank Plc is providing equity advisory services to Technip SA.

Tecnicas Reunidas (TRE.MC, 28-Mar-2014, EUR 40.80), Equal Weight/Positive, J/K/M/N

Tesoro Corporation (TSO, 28-Mar-2014, USD 50.50), Overweight/Positive, A/C/D/F/J/K/L/M

TGS (TGS.OL, 28-Mar-2014, NOK 190.50), Underweight/Positive, J

Total (TOTF.PA, 28-Mar-2014, EUR 48.03), Overweight/Positive, A/C/D/F/J/K/L/M/N

Tullow Oil (TLW.L, 28-Mar-2014, GBP 7.60), Overweight/Positive, A/D/J/K/L/M/N/Q

Tupras (TUPRS.IS, 28-Mar-2014, TRY 44.90), Underweight/Neutral, J/K/N


29 April 2014 50


Valero Energy (VLO, 28-Mar-2014, USD 52.86), Overweight/Positive, A/C/D/J/K/L/M/N

Wood Group (WG.L, 28-Mar-2014, GBP 7.68), Overweight/Positive, C/D/E/F/J/K/L/M/N

Disclosure Legend:

A: Barclays Bank PLC and/or an affiliate has been lead manager or co-lead manager of a publicly disclosed offer of securities of the issuer in theprevious 12 months.

B: An employee of Barclays Bank PLC and/or an affiliate is a director of this issuer.

C: Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in equity securities issued by this issuer or one of its affiliates.

D: Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from this issuer in the past 12 months.

E: Barclays Bank PLC and/or an affiliate expects to receive or intends to seek compensation for investment banking services from this issuerwithin the next 3 months.

F: Barclays Bank PLC and/or an affiliate beneficially owned 1% or more of a class of equity securities of the issuer as of the end of the monthprior to the research report's issuance.

G: One of the analysts on the coverage team (or a member of his or her household) owns shares of the common stock of this issuer.

H: This issuer beneficially owns 5% or more of any class of common equity securities of Barclays Bank PLC.

I: Barclays Bank PLC and/or an affiliate has a significant financial interest in the securities of this issuer.

J: Barclays Bank PLC and/or an affiliate trades regularly in the securities of this issuer.

K: Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from this issuer within the past 12 months.

L: This issuer is, or during the past 12 months has been, an investment banking client of Barclays Bank PLC and/or an affiliate.

M: This issuer is, or during the past 12 months has been, a non-investment banking client (securities related services) of Barclays Bank PLCand/or an affiliate.

N: This issuer is, or during the past 12 months has been, a non-investment banking client (non-securities related services) of Barclays Bank PLCand/or an affiliate.

O: Barclays Capital Inc., through Barclays Market Makers, is a Designated Market Maker in this issuer's stock, which is listed on the New YorkStock Exchange. At any given time, its associated Designated Market Maker may have "long" or "short" inventory position in the stock; and itsassociated Designated Market Maker may be on the opposite side of orders executed on the floor of the New York Stock Exchange in the stock.

P: A partner, director or officer of Barclays Capital Canada Inc. has, during the preceding 12 months, provided services to the subject company forremuneration, other than normal course investment advisory or trade execution services.

Q: The Corporate and Investment Banking division of Barclays Bank PLC, is a Corporate Broker to this issuer.

R: Barclays Capital Canada Inc. and/or an affiliate has received compensation for investment banking services from this issuer in the past 12months.

S: Barclays Capital Canada Inc. is a market-maker in an equity or equity related security issued by this issuer.

Guide to the Barclays Fundamental Equity Research Rating System:

Our coverage analysts use a relative rating system in which they rate stocks as Overweight, Equal Weight or Underweight (see definitions below)relative to other companies covered by the analyst or a team of analysts that are deemed to be in the same industry (the "industry coverageuniverse").

In addition to the stock rating, we provide industry views which rate the outlook for the industry coverage universe as Positive, Neutral orNegative (see definitions below). A rating system using terms such as buy, hold and sell is not the equivalent of our rating system. Investorsshould carefully read the entire research report including the definitions of all ratings and not infer its contents from ratings alone.

Stock Rating

Overweight - The stock is expected to outperform the unweighted expected total return of the industry coverage universe over a 12-monthinvestment horizon.

Equal Weight - The stock is expected to perform in line with the unweighted expected total return of the industry coverage universe over a 12-month investment horizon.

Underweight - The stock is expected to underperform the unweighted expected total return of the industry coverage universe over a 12-monthinvestment horizon.

Rating Suspended - The rating and target price have been suspended temporarily due to market events that made coverage impracticable or tocomply with applicable regulations and/or firm policies in certain circumstances including where the Corporate and Investment Banking Divisionof Barclays is acting in an advisory capacity in a merger or strategic transaction involving the company.

Industry View

Positive - industry coverage universe fundamentals/valuations are improving.

Neutral - industry coverage universe fundamentals/valuations are steady, neither improving nor deteriorating.


29 April 2014 51


Negative - industry coverage universe fundamentals/valuations are deteriorating.

Below is the list of companies that constitute the "industry coverage universe":

Americas Integrated Oil

Cenovus Energy Inc. (CVE.TO) Chevron Corporation (CVX) ConocoPhillips (COP)

Exxon Mobil Corp. (XOM) Hess Corp. (HES) Husky Energy, Inc. (HSE.TO)

Imperial Oil Ltd. (IMO.TO) Murphy Oil (MUR) Petroleo Brasileiro S.A. (PBR)

Petroleo Brasileiro S.A. (PBRA) Suncor Energy (SU.TO)

Asia ex-Japan Oil & Gas

Bharat Petroleum Corp., Ltd. (BPCL.NS) Cairn India (CAIL.NS) China Steel Chemical (1723.TW)

CNOOC (0883.HK) Formosa Chemicals (1326.TW) Formosa Petrochemical (6505.TW)

Formosa Plastics (1301.TW) Gail India (GAIL.NS) Hindustan Petroleum Corp., Ltd. (HPCL.NS)

Indian Oil Corp., Ltd. (IOC.NS) Nan Ya Plastics (1303.TW) Oil & Natural Gas Corp., Ltd. (ONGC.NS)

Oil India (OILI.NS) PetroChina (0857.HK) PETRONAS Chemicals (PCGB.KL)

Petronet LNG (PLNG.NS) Reliance Industries (RELI.NS) Sinopec (0386.HK)

TSRC Corp. (2103.TW)

Asia ex-Japan Oil Services & Drilling

Anton Oilfield Services (3337.HK) China Oilfield Services (COSL) (2883.HK) EZRA Holdings (EZRA.SI)

Hilong Holding, Ltd. (1623.HK) Honghua Group (0196.HK) Keppel Corp. (KPLM.SI)

Sembcorp Marine (SCMN.SI) SPT Energy Group (1251.HK)

CEEMEA Oil & Gas

Bashneft (BANE.MM) Gazprom (GAZPq.L) Gazprom Neft (SIBNq.L)

Lukoil (LKOHyq.L) Novatek (NVTKq.L) Rosneft (ROSNq.L)

Sasol Limited (SOLJ.J) Surgutneftegas (SNGSyq.L) Surgutneftegas (SNGS_p.MM)

Tatneft (TATNxq.L)

European Integrated Oil

BG Group (BG.L) BP (BP.L) Eni (ENI.MI)

Galp Energia (GALP.LS) MOL (MOLB.BU) OMV (OMVV.VI)

Repsol (REP.MC) Royal Dutch Shell A (RDSa.L) Royal Dutch Shell B (RDSb.L)

Statoil ASA (STL.OL) Total (TOTF.PA)

European Oil & Gas: E&P

Afren Plc (AFRE.L) Africa Oil Corp. (AOIC.ST) Bowleven PLC (BLVN.L)

Cairn Energy (CNE.L) Caracal Energy Inc. (CRCL.L) Enquest (ENQ.L)

Oryx Petroleum Corp., Ltd. (OXC.TO) Premier Oil (PMO.L) Rockhopper Exploration (RKH.L)

Salamander Energy (SMDR.L) Soco International (SIA.L) Tullow Oil (TLW.L)

European Oil Services & Drilling

Aker Solutions (AKSO.OL) AMEC plc (AMEC.L) CGG (GEPH.PA)

Hunting (HTG.L) Maire Tecnimont (MTCM.MI) Petrofac (PFC.L)

Petroleum Geo-Services (PGS.OL) Polarcus (PLCS.OL) Saipem (SPMI.MI)

SBM Offshore (SBMO.AS) Subsea 7 SA (SUBC.OL) Technip (TECF.PA)

Tecnicas Reunidas (TRE.MC) TGS (TGS.OL) Wood Group (WG.L)

European Refining & Marketing

Essar Energy (ESSR.L) Grupa Lotos (LTSP.WA) Hellenic Petroleum (HEPr.AT)

Motor Oil (MORr.AT) Neste Oil (NES1V.HE) PKN Orlen (PKN.WA)

Saras (SRS.MI)

Russian Oil Services & Drilling

C.A.T. Oil AG (O2C.DE) Eurasia Drilling Co., Ltd. (EDCLq.L) Integra Group (INTEq.L)

TMK (TRMKq.L)

Turkey General Industrials


29 April 2014 52


Arcelik (ARCLK.IS) BIM (BIMAS.IS) Ford Otosan (FROTO.IS)

Koc Holding (KCHOL.IS) Migros (MGROS.IS) Pegasus Airlines (PGSUS.IS)

Tofas Fabrika (TOASO.IS) Tupras (TUPRS.IS) Turkish Airlines (THYAO.IS)

U.S. Independent Refiners

Alon USA Energy (ALJ) Delek US Holdings Inc. (DK) HollyFrontier Corp. (HFC)

Marathon Petroleum Corp. (MPC) Phillips 66 (PSX) Tesoro Corporation (TSO)

Valero Energy (VLO) Western Refining, Inc. (WNR)

Distribution of Ratings:

Barclays Equity Research has 2616 companies under coverage.

45% have been assigned an Overweight rating which, for purposes of mandatory regulatory disclosures, is classified as a Buy rating; 45% ofcompanies with this rating are investment banking clients of the Firm.

37% have been assigned an Equal Weight rating which, for purposes of mandatory regulatory disclosures, is classified as a Hold rating; 43% ofcompanies with this rating are investment banking clients of the Firm.

15% have been assigned an Underweight rating which, for purposes of mandatory regulatory disclosures, is classified as a Sell rating; 39% ofcompanies with this rating are investment banking clients of the Firm.

Guide to the Barclays Research Price Target:

Each analyst has a single price target on the stocks that they cover. The price target represents that analyst's expectation of where the stock willtrade in the next 12 months. Upside/downside scenarios, where provided, represent potential upside/potential downside to each analyst's pricetarget over the same 12-month period.

Barclays offices involved in the production of equity research:

London

Barclays Bank PLC (Barclays, London)

New York

Barclays Capital Inc. (BCI, New York)

Tokyo

Barclays Securities Japan Limited (BSJL, Tokyo)

São Paulo

Banco Barclays S.A. (BBSA, São Paulo)

Hong Kong

Barclays Bank PLC, Hong Kong branch (Barclays Bank, Hong Kong)

Toronto

Barclays Capital Canada Inc. (BCCI, Toronto)

Johannesburg

Absa Bank Limited (Absa, Johannesburg)

Mexico City

Barclays Bank Mexico, S.A. (BBMX, Mexico City)

Taiwan

Barclays Capital Securities Taiwan Limited (BCSTW, Taiwan)

Seoul

Barclays Capital Securities Limited (BCSL, Seoul)

Mumbai

Barclays Securities (India) Private Limited (BSIPL, Mumbai)

Singapore

Barclays Bank PLC, Singapore branch (Barclays Bank, Singapore)

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