JPM E&P Valuation Analysis: Analyzing E&P Valuations at Updated Strip Pricing for 2026-27

Research evidence excerpt

JPM E&P Valuation Analysis: Analyzing E&P Valuations at Updated Strip Pricing for 2026-27

nary share capital of Intertek by EV yields in our coverage group. In 2027, TALO (24.0%) and SM (15.8%)

Isotope Bidco Limited (a newly formed trade at the highest FCF/EV yields.

company to be indirectly owned by EQT X

–2026(StripPricing) and Figure 5EV/EBITDAX–2027(StripPricing) illustrate EV/• Updated multiples at strip pricing. Figure 4EV/EBITDAX EUR SCSp and EQT X USD SCSp, each

EBITDA valuations at strip, with Smid Cap E&P stocks continuing to fetch the

acting through its manager (gérant) EQT

lowest multiples (TALO, APA, SM, and CRGY all trade below 3x). On the

Fund Management S.à r.l., together with

other hand, the most expensive stocks in 2026 at strip pricing are WHK (10.6x)

certain indirect minority shareholders

and VNOM (8.2x). Figure 6EV/DACF–2026(StripPricing) and Figure 7EV/DACF–2027(StripPricing) illustrate our EV/DACF multiples

including, among others, ADIA and

at strip pricing.

Mubadala) as announced on 16th April

• Consensus estimates appear too high for gas but low for oily E&Ps at strip 2026 and updated on 18th June 2026.

pricing in 2027: As noted in Figure 2AnualEstimates(2026)–JPMatStripPricingvs.STe, our 2026 EBITDA estimates for Large

Cap oily E&Ps are +4% above consensus and +5% for SMiD Cap oily E&Ps

This research report and the information assuming strip pricing. However, our estimates for gassy E&Ps are -4% below

contained herein is not intended to provide consensus estimates flexed to updated strip pricing. In 2027, our EBITDA

estimates for Large Cap/SMid cap oily E&Ps at updated strip pricing are +3% voting advice, serve as an endorsement of

above consensus. Our EBITDA forecasts for our natural gas coverage are -6% the proposed transaction or result in