RE: RE: RE: recycle raio? Its a fundamental error to value an oil and gas company based on the percentage of liquids they produce.
Its how much cash they generate per share that matters.
A barrel of oil sells for more than the a BOE of gas. That does not mean that those that produce oil always make more than those who produce gas.
All other things being equal, a company that produces all gas, and no oil, that generates more cash flow per share than another company that produces all oil, will always be more valuable than the oil company.
It really doesn't matter if production comes from coal, gas, oil, heavy oil, sweat oil, sour oil, oil sands etc. What matters is how much cash flow per share they get from whatever they produce.