HOUSTON, April 2, 2014 /PRNewswire/ -- Recognizing financial professionals' rapidly expanding need for more data and information across industry sectors, S&P Capital IQ, a leading provider of multi-asset class data, research and analytics, today presented a case study using its industry-specific estimates for U.S.-based Oil & Gas companies. The firm presented its research before an audience of institutional investors, advisors and industry professionals attending an annual energy symposium on the future of the North American Oil and Gas industry hosted by S&P Capital IQ in Houston. S&P Capital IQ will now provide estimates on items that are critical to the analysis of companies in the Energy sector. These include Average and Total Daily Production of Oil, Gas, Natural Gas Liquids, as well as Exploration Expenses, to name a few. These new supplemental items further augment S&P Capital IQ's global earnings estimates offering.
"As the financial community looks to gain an edge in better understanding the prospects of exploration and production companies, we believe our Oil & Gas industry-specific operating forecasts will enable deeper insight into the production potential that is associated with these companies," said Michael Patton, Director of Global Earnings Estimates, S&P Capital IQ.
According to Rick Kanungo, CFA, Senior Director at S&P Capital IQ, "A detailed break-down of estimates can provide investors with unique insights into a company's earnings performance, and thereby reduce the possibility of surprise. For example, a company might beat estimates on Oil and Natural Gas revenue, while disappointing on Liquid Natural Gas revenues leading to a miss on overall revenue. Our research gathers analyst estimates on many industry specific metrics that are often the underlying drivers of revenue - such as total production or average daily production – factors, we believe, that are closer indicators of actual performance."
Portfolio Managers, Investor Relations Officers, Corporate Treasurers and other market participants are increasingly focused on whether a company's consensus estimate is derived purely from GAAP estimate contributors or includes other 'normalized' estimates. Estimates and reported earnings conforming to U.S. GAAP can vary greatly from earnings 'normalized' across international standards, which is why S&P Capital IQ provides a strict grouping of estimates by different accounting standards.