PFC Energy 50 January 2008

The Definitive Annual Ranking of the Worlds Largest Listed Energy Firms

Strategic Advisors in Global Energy

Combined Value of PFC Energy 50 Climbs 45%

 The combined market capitalization of the PFC Energy 50 increased 45% to top $5 trillion, the largest jump in the lists history.  Much of this value increase reflects the declining US dollar. Royal Dutch Shells share price, for instance, rose 19% in dollar terms, but only 8% in Euros.

China BoomsRussia Disappoints

Traded NOCs Are Top-Performing Group

W  ith future growth potential more than offsetting emerging market risk, NOCs were valued at an average 20 times trailing 12-month earnings, compared with a 12 times average multiple for IOCs.  Petrochina climbed from third to first place on the PFC Energy 50 in the run-up to its Shanghai IPO and posted a 181% share price increase for the year. Other big gainers in the traded NOCs group included Sinopec (+157%), CNOOC (+80%), PTT (+79%) and Petrobras (+93%). PTT climbed furthest in the rankings, gaining fifteen places from #50 to #35.  Most of the value in the oil and gas sector remains outside public markets, in such resource holding companies as Saudi Aramco, National Iranian Oil Company, Kuwait Petroleum Company, Abu Dhabi National Oil Company, Petronas and othersall of which would make the PFC Energy 50 if publicly traded.

 Chinese energy companies reaped a double benefit from surging Chinese markets and strong energy sector performance. The top share price performance in the PFC Energy 50 came from Petrochina (+181%) and Sinopec (+157%) and China Oilfield Services led the service sector with 633% share price growth.  Following several years of strong growth, the four Russian companies on the PFC Energy 50 posted a market cap increase of only 15%no better than the SuperMajors. State-owned companies Gazprom (stock up 13%) and Rosneft (+5%) posted gains, while Lukoil (-1%) and Surgutneftegaz (-19%) declined.

Alternative Energy Company Joins PFC Energy 50

 Iberdrola Renovables (#36) became the first alternative energy producer to join the PFC Energy 50 and leads our first Alternative Energy Top 15. The companies on that list achieved an average 145% share price increase in 2007 and commanded an average 74 multiple, compared with 15 for the PFC Energy 50 as a whole.

Market Favors Service Sector

Smaller IOCs Outperform SuperMajors

 In a year when WTI oil prices rose 57%, the combined capitalization of the SuperMajors increased a mere 15%, reflecting the companies continued struggle to deliver production growth.  Stock buybacks created a gap between share price and market capitalization growth. ExxonMobils 22% share price increase, for instance, translated into a 15% increase in market cap.

 The second highest segment multiple is found in the service sector, where the Top 15 are priced at an average 21 times trailing 12-month earnings. Services are the only sector where US-based companies still dominate, although the years strongest service company share price growth came from a Chinese service company and an Indian drilling company.

PFC Energy 50

2007 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

2006 Rank 3 1 2 4 12 11 5 6 10 7 8 9 14 24 13 16 18 22 15 21 23 19 26 27 36 17 20 28 31 32 30 33 38 50 29 37 42 41 39 46 34 40 35 43

Company Name Petrochina ExxonMobil Gazprom Royal Dutch Shell Sinopec Petrobras BP TOTAL BHP Billiton Chevron Eni ConocoPhillips Schlumberger Reliance Rosneft StatoilHydro BG CNOOC Lukoil ONGC Occidental Gaz de France Encana Suncor Transocean Surgutneftegaz Repsol YPF Marathon Devon Energy Canadian Natl Resources Valero Husky Energy Ecopetrol Apache PTT Iberdrola Renovables Halliburton Hess Sasol Anadarko Woodside Cepsa Formosa Petrochemical Tenaris Gas Natural National Oilwell Varco Centrica Petro-Canada Baker Hughes INPEX

Market Cap ($US Bil.) 723.2 511.9 332.0 264.6 249.5 241.7 230.7 198.5 197.5 197.1 146.3 141.2 117.6 106.3 101.4 99.6 76.6 75.4 74.0 67.1 63.8 57.4 51.2 50.3 45.3 44.3 43.8 43.2 39.6 39.5 38.5 38.2 36.6 35.8 35.3 35.1 33.4 32.2 31.2 30.6 30.4 27.9 27.7 26.4 26.4 26.2 26.2 26.1 25.8 25.3

% Share Price Change (YoY) 181% 22% 13% 8% 157% 93% 8% 4% 59% 27% -2% 23% 56% 127% 5% 6% 66% 80% -1% 42% 58% 15% 26% 18% 66% -19% -7% 32% 33% 17% 37% 14% *50% 62% 79% *11% 22% 103% 31% 51% 32% 20% 35% -10% 33% 140% 1% 12% 9% 24%

Primary Business Integrated NOC Integrated IOC Integrated NOC Integrated IOC Integrated NOC Integrated NOC Integrated IOC Integrated IOC Diversified Minerals Integrated IOC Integrated IOC Integrated IOC Oilfield Services R&M Integrated NOC Integrated NOC Integrated IOC E&P Integrated IOC E&P E&P Gas Utility E&P Integrated IOC Drilling & Seismic Integrated IOC Integrated IOC Integrated IOC E&P E&P R&M Integrated IOC Integrated NOC E&P Integrated NOC Alternatives Oilfield Services Integrated IOC Integrated IOC E&P E&P Integrated IOC R&M Equipment & EPCI Gas Utility Equipment & EPCI Gas Utility Integrated IOC Oilfield Services E&P

HQ Country China US Russia Netherlands China Brazil UK France Australia US Italy US US India Russia Norway UK China Russia India US France Canada Canada US Russia Spain US US Canada US Canada Colombia US Thailand Spain UAE US South Africa US Australia Spain Taiwan Luxembourg Spain US UK Canada US Japan

Ticker/Exch. 601857 CH XOM US GSPBEX RU RDSA NA 600028 CH PETR3 BZ BP/ LN FP FP BHP AU CVX US ENI IM COP US SLB US RIL IN ROSN RU STL NO BG/ LN 883 HK LKOH RU ONGC IN OXY US GAZ FP ECA CN SU CN RIG US SNGS RU REP SM MRO US DVN US CNQ CN VLO US HSE CN ECOPETL CB APA US PTT TB IBR SM HAL US HES US SOL SJ APC US WPL AU CEP SM 6505 TT TS US GAS SM NOV US CNA LN PCA CN BHI US 1605 JP

Source: Bloomberg, PFC Energy estimates, as of 12/31/2007; *YTD Except where noted, share price growth based on primary exchange tickers traded in local currency Petrochinas share price growth calculated by comparing 12/31/2007 Shanghai price with 1/02/2007 Hong Kong price in CNY. At the 12/31/2007 Hong Kong price Petrochinas market capitalization would be $304 billion.

1-Year and 3-Year Growth in Market Capitalization

800%

National Oilwell Varco

IOCs NOCs E&P R&M SERVICE COMPANIES GAS COMPANIES OTHER

700% 3-YEAR GROWTH IN MARKET CAPITALIZATION

Reliance

Petrochina

600%

500% Gazprom

Petrobras Tenaris

Sinopec

400%

300% Valero 200% Lukoil RDShell

Can.Nat. Rescs

BG

CNOOC Transocean

Hess

100% Surgutneftegaz 0% -25% -100% 0% BP 25%

CEPSA ONGC

BHP

StatoilHydro

PTT

Apache Anadarko GasNatural ExxonMobil 50% 75% 100% 125% 150% 175% 200% 225%

1-YEAR GROWTH IN MARKET CAPITALIZATION

Data source: Bloomberg Circle size indicates market cap

How do PFC Energy 50 companies compare in their market cap growth over one and three years? The NOCs have posted the strongest performance, while most IOCs struggled to deliver growth despite the high oil price environment. Equipment manufacturer National Oilwell Varco and Indian refiner Reliance also displayed exceptional growth. Please visit the PFC Energy 50 website at www.pfcenergy50.com for additional information and analysis.

Changes in Market Capitalization vs. WTI Prices

3,000 2007 2,500 2006 MARKET CAPITALIZATION (INDEX 12/31) 2,000

GAZP PTR VLO PBR APA MRO RIG SLB TOT

1,500

2005

XOM

1,000

500 2001 0 $20 $25

2004 2003 2002

$30

$35

$40

$45

$50

$55

$60

$65

$70

$75

$80

$85

$90

$95

WTI PRICES (US$ 12/31)

Source: Bloomberg

PFC Energy 50 companies have not benefited equally from rising oil prices. The chart compares market capitalization indices for selected companies (vertical scale) with the West Texas Intermediate benchmark crude oil price (horizontal scale) since 2001. The biggest winners have been the traded NOCs (Gazprom, Petrochina, Petrobras) and refiner Valero. While crude oil prices have more than quadrupled since 2001, the market capitalizations of ExxonMobil and TOTAL, for instance, have not quite doubled. Please visit the PFC Energy 50 website at www.pfcenergy50.com for additional information and analysis.

Top Segment Performers by YOY Share Price Growth

% Share Price Change (YoY) 0% CNOOC Apache BHP Billiton Essar Oil Mangalore Refining Reliance Qatar Gas Transportation GAIL Korea Gas China Oilfield Services Smith International Oceaneering International Aban Offshore Atwood Oceanics Diamond Offshore Foster Wheeler Worley Parsons National Oilwell Varco First Solar SunPower Q-Cells 100% 200% 300% 400% 500% Hess BG 0 % Share Price Change (YoY) 50 100 150 200

E&P
497%

Marathon Sasol Chevron

R&M

INTEGRATED IOCs

Petrochina Sinopec Petrobras PTT Gazprom

membership

GAS
633%

INTEGRATED NOCs

OILFIELD SERVICE

DRILLING & SEISMIC

EQUIPMENT & EPCI

795%

ALTERNATIVES

Traded NOCs performed well in 2007, posting an average 73% share price increase, compared with 20% for IOCs and 42% for E&P companies. The top two performers among the IOCs, Hess and BG, both benefited from association with the years most exciting exploration newsthe offshore Brazil pre-salt play. Chinese and Indian companies, buoyed by both surging domestic stock markets and energy sector strength, posted impressive gains. As a sector, Alternative Energy delivered stellar share price performance, including the highest overall stock price gain among PFC Energy Top 15 companies, First Solars 795% gain.

Source: Bloomberg, PFC Energy estimates, as of 12/31/2007

Top 15 Exploration & Production

E&P 2007 Rank

E&P 2006 Rank

Company Name

Market Cap ($US billion)

% Share Price Change (YoY)

Est P/E Current Yr

Debt/ Capital

HQ Country

Ticker/Exch.

3 4 6 5 7

1 3 2

CNOOC Occidental Devon Energy Apache Encana ONGC

75.4 63.8

67.1

80% 42% 58%

18 17

15

16% 8% 28% 25% 35% 2%

China India US US US US

ONGC IN OXY US ECA CN

883 HK

4 -

10 12 11

5 7

Canadian Nat'l Resources

39.6 35.8 *

51.2

26%

39.5

33%

14 19 16 15 15

Canada Canada Australia Australia US US US

BHP Billiton Anadarko Woodside

62%

17%

46% 26%

CNQ CN BHP AU WPL AU XTO US APC US APA US

DVN US

6 11 12 9 8

14

13

XTO Energy EOG Resources Novatek

INPEX

30.4 24.8 22.0 22.8 25.3

30.6

59% 32% 51%

36%

24% 18%

22

19 16

48% 23% 17% 4%

15

14

Chesapeake

20.0

43% 35%

34

15

44% 16%

Japan

1605 JP

13

21

Russia

NVTK RU

48%

CHK US

EOG US

Source: Bloomberg, PFC Energy estimates, as of 12/31/2007 Share price growth based on primary exchange tickers traded in local currency P/E based on earnings from continuing operations for the 12 months ended 9/30/2007 Debt/Capital is ratio between total debt and total capital based on most recent published balance sheet * BHP is a diversified minerals company; its oil and gas E&P activities, which account for 15-20% of the companys total, had an estimated value in the range of of $30-35 billion. BHP Billitons total market capitalization was $197.5 billion.

Top 15 Refining & Marketing

R&M 2007 Rank

R&M 2006 Rank

Company Name

Market Cap ($US billion)

% Share Price Change (YoY)

Est P/E Current Yr

Debt/ Capital

HQ Country

Ticker/Exch.

4 6 8 7 5

2 -

Reliance

4 5 -

Formosa Petrochemical Indian Oil SK Energy Slavneft S-Oil

Valero

106.3 38.5 27.7 17.7

127% 35% 37%

35 20 8

32%

27%

India Taiwan Korea India US

24.0

Nippon Oil

10 12

6 7

10.5

11.8

*43% 0%

76% 14% 15% 5%

N/A 15 15 N/A 10 12 9 9 9

12

40% 5%

44%

41%

6505 TT

VLO US

RIL IN

47%

11

14 15

13

14 13 -

PKN Orlen

Neste Oil Sunoco Tesoro

Essar Oil

9.4

9.5

9.1 9.1 7.3

497% 9%

46% 29% 75%

Russia Korea India

Japan

096770 KS SLAV RU 5001 JP

IOCL IN

010950 KS

Tupras

8.5 6.5

42% 234%

16%

Mangalore Refining

6.1

45%

10 45

40% 33% 17%

30%

Finland US US

Poland Turkey India

NES1V FH PKN PW SUN US TSO US

ESOIL IN

TUPRS TI MRPL IN

46%

Source: Bloomberg, PFC Energy estimates, as of 12/31/2007 Share price growth based on primary exchange tickers traded in local currency P/E based on earnings from continuing operations for the 12 months ended 9/30/2007 Debt/Capital is ratio between total debt and total capital based on most recent published balance sheet

Top 15 Gas Utilities

2007 Rank

2006 Rank

Company Name

Market Cap ($US billion)

% Share Price Change (YoY)

Est P/E Current Yr

Debt/ Capital

HQ Country

Ticker/Exch.

4 6 8 7 5

3 6 2

Gaz de France

Gas Natural Centrica

26.4 26.2 18.6 16.2

57.4

33%

15% 1%

19 19 16 14 17 14

32% 23%

22% 51%

France

Spain UK US

GAS SM CNA LN SRE US 3 HK

GAZ FP

13 10 14 12 9 11 7

Hong Kong and China Gas Sempra Energy Tokyo Gas GAIL

50% -17% 0% 10%

12.7 11.6 8.7 7.0 7.4

40% 24%

China

10 12

Perusahaan Gas Petronas Gas Korea Gas NiSource Enagas

Osaka Gas

107% 32%

11

14 15

13

Canadian Utilities

6.4 5.9 5.2

20% 57% -3%

13%

20

43

19

18

44% 41%

Japan Japan Spain India

GAIL IN 9532 JP PGAS IJ

9531 JP

5.4 4.7

Qatar Gas Transportation

-22%

19 N/A 13

16

17

59% 49% 57% 57% 6%

55%

Indonesia

Malaysia Canada Korea US

ENG SM PTG MK

68%

036460 KS QGTS QD NI US

CU CN

135%

Qatar

Source: Bloomberg, PFC Energy estimates, as of 12/31/2007 Share price growth based on primary exchange tickers traded in local currency P/E based on earnings from continuing operations for the 12 months ended 9/30/2007 Debt/Capital is ratio between total debt and total capital based on most recent published balance sheet Excludes major gas utilities that are components of diversified energy companies, including KeySpan (National Grid) and Reliance Natural Resources (Reliance Industries)

Top 15 Oilfield Services

2007 Rank

2006 Rank

Company Name

Market Cap ($US billion)

% Share Price Change (YoY)

Est P/E Current Yr

Debt/ Capital

HQ Country

Ticker/Exch.

4 6 8 7 5

4 Weatherford International Smith International SBM Offshore BJ Services Prosafe

Schlumberger Baker Hughes Halliburton

117.6 33.4 25.8

56% 22% 9%

25 18

15

27%

31%

China Oilfield Services

23.1

10 12

14 -

14.8 4.5

17.4 7.1

633%

64%

80% -17% -17% 70%

43 24 10 15

22

33%

15%

US US US US US

US

HAL US WFT US

SLB US

BHI US

24%

21%

China

601808 CH BJS US

11

- Oceaneering International Core Laboratories Bourbon

4.0 3.6 2.8

3.7

11%

29 23 18

48% 23%

45% Netherlands US US US US

19%

SII US

Norway France

SBMO NA

PRS NO

14 15

13

Superior Energy Services Expro International Seacor Holdings

2.9 2.3

54% 17% 5%

18%

28 28

60% 43% 81%

GBB FP SPN US CLB US

OII US

11

2.1

-6%

15

38% 38%

UK

CKH US

EXR LN

Source: Bloomberg, PFC Energy estimates, as of 12/31/2007 Share price growth based on primary exchange tickers traded in local currency China Oilfield Services share price growth calculated by comparing 12/31/2007 Shanghai price with 1/02/2007 Hong Kong price in CNY This years PFC Energy 50 divides the Oilfield Services, Machinery & Equipment category into two sectors: Oilfield Services and Equipment & EPCI; 2006 ranks are from that years single Oilfield Services, Machinery & Equipment Top 15. Oilfield Services companies have operations that are primarily tied to oil and gas company operating expenses

Top 15 Equipment & EPCI

2007 Rank

2006 Rank

Company Name

Market Cap ($US billion)

% Share Price Change (YoY)

Est P/E Current Yr

Debt/ Capital

HQ Country

Ticker/Exch.

4 6 8 7 5

5 7

National Oilwell Varco Saipem Keppel Fluor

Tenaris

26.4 26.2 17.6

140% 39% 50% 78%

-10%

22 22

17

41% Luxembourg 62% 27% 2% 12% Italy US US US Australia France US US US

13 -

11

McDermott International Foster Wheeler

14.3 12.9 13.3

15

NOV US KEP SP

TS US

132%

10 12

12 9

Cameron International Worley Parsons Technip

10.5 10.5 8.5

11.1

181% 144% 84% 5% 81%

26

37

25

Singapore

SPM IM

24% 27% 24% 27%

MDR US FWLT US WOR AU TEC FP FTI US FLR US

24

31%

11

14 15

13

10

SembCorp Industries Grant Prideco Aker Group

FMC Technologies

7.4 7.2 7.2

Offshore Oil Engineering

6.8

7.1

-15% 80%

51%

29 7

20

51

CAM US

14 14

29%

40%

47% 11% 9%

25%

Singapore US

Norway China

AKER NO

SCI SP

57

600583 CH

GRP US

Source: Bloomberg, PFC Energy estimates, as of 12/31/2007 Share price growth based on primary exchange tickers traded in local currency P/E based on earnings from continuing operations for the 12 months ended 9/30/2007 Debt/Capital is ratio between total debt and total capital based on most recent published balance sheet Equipment and EPCI companies have operations that are primarily tied to oil and gas company capital spending Excludes major equipment and services suppliers that are components of diversified equipment and engineering companies, such as GE and ABB

Top 15 Drilling & Seismic

Integrated 2007 Rank

Integrated 2006 Rank

Company Name

Market Cap ($US billion)

% Share Price Change (YoY)

Est P/E Current Yr

Debt/ Capital

HQ Country

Ticker/Exch.

4 6 8 7 5

4 3 7

Diamond Offshore Noble Corp Seadrill CGG

Transocean

45.3 15.2 8.6

19.7 9.8 7.8 7.8 5.3 5.2 5.7

66% 48% 26% 19% -8% 78%

22

21

23%

10 8 5

Ensco International Nabors Industries Fugro

40 22 9 8

14

49% 37%

16%

15%

US US US US

US

RIG US DO US NE US

19% 13%

11%

Norway France

SDRL NO ESV US GA FP

10 12

13 9 -

Pride International

11

Petroleum Geo-Services Rowan Companies Aban Offshore

46% 258% 15%

14 10 11 21

48%

14 15

13

12

Fred. Olsen Energy Atwood Oceanics

Helmerich & Payne

4.4

4.7 4.1

3.2

3.7

64% 105% 2%

19%

63

95% 20% 3% 18%

58%

27% US 47% Netherlands India US US US

NBR US FUR NA PDE US

Norway

ABAN IN RDC US HP US

PGS NO

10 23 15

52%

Norway

ATW US

FOE NO

Source: Bloomberg, PFC Energy estimates, as of 12/31/2007 Share price growth based on primary exchange tickers traded in local currency P/E based on earnings from continuing operations for the 12 months ended 9/30/2007 Debt/Capital is ratio between total debt and total capital based on most recent published balance sheet Drilling & Seismic companies have operations that are primarily tied to oil and gas exploration spending

Which PFC Energy 50 companies spend most on R&D?

ENERGY COMPANIES UNIVERSE OF LISTED COMPANIES 1,200 4%

8,000
1,000

7,000
800 TOTAL R&D SPENDING (US $MILLION) US $ MILLION

3%

6,000

600

2%

5,000

400

4,000
200

1%

3,000
0 XOM PBR PTR GAZP BP BHI ENI CVX BHP RDS TOT SLB SPC HAL STL 0%

2,000

1,000

2007 R&D SPENDING

% OF REVENUES

Source: Company information, PFC Energy estimates

New technology will be essential to expanding energy supplies and maintaining energy affordability in the years ahead. Shown in the chart above are the Top 15 R&D spenders among the PFC Energy 50 companies. Shell spends the most on R&D in absolute terms, while service companies Baker Hughes and Schlumberger spend the highest percentage of revenues. Not included in the chart are several non-traded NOCs that have substantial R&D budgets. As shown in the chart on the left, expenditures in the oil and gas industry are dwarfed by those in almost every other industry.

Top 15 Alternative Energy

2007 Rank

2006 Rank

Company Name

Market Cap ($US billion)

% Share Price Change (YoY)

Est P/E Current Yr

Debt/ Capital

HQ Country

Ticker/Exch.

4 6 8 7 5

Iberdrola Renovables

Renewable Energy First Solar Q-Cells

20.8 16.0 12.4 6.8 4.3 4.3 2.4 2.3 1.9 1.6 1.8 3.2

25.2

35.1

795%

142%

*7%

N/A 356 89 43 64 78

20%

43% 10%

Norway Germany China US US

Spain

Suntech Power Holdings SolarWorld SunPower

188%

10.9

142% 251% 19% 74%

296 96

34%

52%

19%

FSLR US

REC NO

IBR SM

QCE GR

10 12

EdF Energies Nouvelles Covanta Holding Solaria Energia

50% 71%

11

PNOC Energy Development Ormat Technologies Motech Industries Solarfun Power

*148% 49% 34%

25%

N/A 92 23 10

44

47% 12%

Germany France US

SPWR US SWV GR EEN FP

STP US

58% Phillipines 47% 31% 0% Taiwan China US US

Spain

CVA US

EDC PM 6244 TT ORA US

SLR SM

14 15

13

Evergreen Solar

128%

179%

-10%

N/A

100

29%

SOLF US ESLR US

Source: Bloomberg, PFC Energy estimates, as of 12/31/2007; *YTD Share price growth based on primary exchange tickers traded in local currency P/E based on earnings from continuing operations for the 12 months ended 9/30/2007 Debt/Capital is ratio between total debt and total capital based on most recent published balance sheet Other PFC Energy 100 companies own substantial shares in Iberdrola Renovables and EdF Energies Nouvelles

PFC Energy has over 150 advisors throughout the world:  Bahrain* Beijing Brussels Buenos Aires Calgary Cambridge (UK) Houston* Kuala Lumpur* Lausanne* Mumbai New York Paris* San Francisco Washington DC*
*Main regional offices

This year, the PFC Energy 50 website includes several exciting new features: dynamic charts illustrating key trends, an interactive tool for testing market capitalization drivers and the first PFC Energy 100 listingincluding power, coal and nuclear companies. Also included is an archive of previous PFC Energy 50 reports. Please visit www.pfcenergy50.com

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