London-listed Cairn Energy and Genel Energy are among the oil firms which are least exposed to oil price changes, due to a mixture of their gas price exposure and large cash balances.
According to research from Morgan Stanley, if the brent crude oil price moves up or down by $10 per barrel in the long term, it will have an 11 per cent impact on Cairn’s net asset value (NAV), and a 15 per cent impact on Genel’s.
The bank also recommended Genel as an investment for those “looking to play a recovery in the oil market”, as it is one of the most “resilient albeit not necessarily most geared producers”. Tullow Oil and Premier Oil are also recommended on the same basis.
Subscribe to the City A.M. newsletter to have our top stories delivered directly to your inbox.