Basic principles are widely understood in the financial industry, but the terminology and analytical techniques can vary greatly. This book is written for the nonfinancial shareholders, managers, and oil company employees interested in the forces that influence stock values. The bottom line in any company is expressed in the language of finance. This book explains financial concepts in a nontechnical, practical way so that nonfinancial professionals and others may understand and appreciate this aspect of the business. When the first edition of this book was written, companies disclosed substantially less information than what is available today. This additional information allows a better understanding of the financial status and health of a company. But there is still room for improvement.
I bought this book because I was interested in investing in ConocoPhillips when the prices of crude oil started to drop in 2008. This book will not teach you everything about the financial analysis of oil companies, but it will teach you enough to understand how oil companies work. And if you are interested in investing in oil companies, you need to understand how these businesses work. There are different ways to value companies, and I found it very helpful that the authors explain how oil companies can be valued by looking at its assets such as reserves, pipelines, tankers, refineries, and marketing outlets. - Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market
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