There are plenty of gas and oil companies in the UK with an independent label attached to them. When it comes to ‘upstream’ centric independent gas and oil companies, Premier Oil is the name on many people’s lips. As an ‘upstream’ exploration company, they place almost exclusive focus on the exploitation of oil and gas. The company is a constant on the FTSE 250 Index and a mainstay on the London Stock Exchange. Premier Oil shares have become newsworthy as of late, but do they represent a worthy investment for your portfolio?

History

The term ‘independent’, when it comes to gas and oil companies, is often used very loosely, but in Premier Oil’s beginnings case it is truly fitting. Starting as the Caribbean Oil Company back in 1934, they would alter their name two years later to Premier Oilfields (later just Premier Oil) prior to their stock market flotation. After acquiring their first interest in the North Sea in the early 1970s, the company would then begin their meteoric rise. The 1980s and 1990s would make the ‘independent’ company a major player within the UK, a status that still remains to this very day. Such history has helped Premier Oil shares become a hot commodity amongst investors.

The big picture

Premier Oil has always been a company that looks towards the big picture when it comes to stock, even during times of poor business performance. During July 2013, the company lowered its guidance from 70,000 barrels of oil equivalent generated per day to 63,000. It was a move that made the market nervous, but Premier Oil moved quickly to quash any advertence to the brand. The share price dipped on such news, but Premier Oil went on the offensive. Investors jumped on board, seeing it as a golden opportunity and a golden opportunity it turned out to be. Compared to the competitors at the time the price was a steal. Using this dip to sell stock, the winds of change were on the horizon. Soon enough the stock price would rebound. It shows any potential investors in Premier Oil shares that their business operation is steady, as few companies in the sector handle a downturn better or keep their eyes on the big picture better than Premier Oil.

Increased operations

The company continues to increase their working operations. An oil and gas company is only ever as good as their exploration exploits. So, the fact that Premier Oil is working in Pakistan, Indonesia, Vietnam, India, Norway, Congo, Philippines, Saharawi, Egypt and the United Kingdom almost simultaneously, says a great deal about the company’s prospect.

Final thoughts

Independent oil and gas companies are a dime a dozen in today’s marketplace, so it pays to invest in the right one. Premier Oil has become one of the company’s that is regularly discussed within investor circles, however this isn’t necessarily a bad thing. The company has shown that they have what it takes to spin a positive into a negative, which when partnered up with progressive operations makes Premier Oil shares an increasingly appealing prospect.

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