Players with regional exposure outperform those without, says Ren Cap.
During the past seven years, the shares of the four largest oil and gas companies with significant African exposure – ENI, Marathon Oil Corp, Total and Hess Corp – have outperformed their peers without regional exposure.
In a research note published today by investment bank Renaissance Capital, analyst Dragan Trajkov suggests that this is the result of good industry fundamentals in Africa during this period: oil and gas production growth, which is ranked number one among six global geographical areas; crude oil reserve growth (ranked number three); and export potential (ranked number one).
“In our view, the good fundamentals make Africa a good investment opportunity in the global oil and gas industry,” writes Trajkov.
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