Korean Energy Economic Review ISSN:1599-7057(Print) 에너지경제연구

This Paper analyzes the differential impacts of external shocks such as the global financial crisis on the independent E&P companies and examines the correlation between organic growth and enterprise value of the independents. It is shown that the independents were affected more than the majors and other integrated E&P companies by the financial crisis. Moreover, the differential impacts were found even among the independents, which originate from such heterogeneities in firm size, geographical diversification and the share of gas reserves. It is also shown that the growth strategy of the independents through acquiring the organic reserves contributes more positively to long-term enterprise value than that through the purchased reserve.