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Aaron Havill Paul Gerwe Michael Holland

Aaron Havill Paul Gerwe Michael Holland. Company. PetroChina Company Limited is the largest oil and natural gas producer and seller in the PRC Wide range of petroleum and natural gas activities Began exploration in the 1950’s Today, operations are primarily in China

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Aaron Havill Paul Gerwe Michael Holland

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  1. Aaron Havill Paul Gerwe Michael Holland

  2. Company • PetroChina Company Limited is the largest oil and natural gas producer and seller in the PRC • Wide range of petroleum and natural gas activities • Began exploration in the 1950’s • Today, operations are primarily in China • Since 2005, increasing oversea operations and imports

  3. Segments • Exploration and Production • Natural gas and crude oils • Refining and Chemicals • Diesel and other fuel production, also chemicals • Marketing • Transportation, storage, and distribution • Natural Gas and Pipeline • Transporter (pipelines) and seller of natural gas

  4. Industry • The energy landscape in China is changing • Government regulations: increase in demand for natural gas • PetroChina is well positioned to be dominant in China’s growing natural gas market

  5. Competition

  6. Economic Moat • 22.2 billion barrels of oil reserves • Chinas largest oil and gas company • Growing Chinese middle class increases demand for cars and oil • Largest Chinese supplier and researcher of natural gas

  7. Risk • Expansion outside of China causes international exposure to risk • Gas industry volatility • Government ownership / regulations

  8. Management • PRC owns 86.3% of parent company Chinese National Petroleum Company • Government has large invested interest in the success of the company • Government and shareholders share same interest in international expansion • Modest pay for top executives

  9. Valuation • Last traded: $140.75

  10. Outlook / Why We Should Buy • Wide moat • Attractive valuation • Strong revenue prospects • Growth opportunities • Expansion into international oil • China’s dependency / protected position

  11. References • Bloomberg Terminal • www.morningstar.com • www.finance.yahoo.com • www.valueline.com • www.sec.gov/edgar • www.petrochina.com.cn/ptr/

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