what is the ev 2p ratio 
the ev 2p ratio is a ratio used to value oil and gas companies it consists of the enterprise value ev divided by the proven and probable 2p reserves the enterprise value reflects the company s total value proven and probable 2p refers to energy reserves such as oil that are likely to be recovered the formula for the ev 2p ratio isev 2p enterprise value2p reserveswhere 2p reserves total proven and probable reservesenterprise value mc total debt tcmc market capitalizationtc total cash and cash equivalents begin aligned text ev 2p frac text enterprise value text 2p reserves textbf where text 2p reserves text total proven and probable reserves text enterprise value text mc text total debt text tc text mc text market capitalization text tc text total cash and cash equivalents end aligned ev 2p 2p reservesenterprise value where 2p reserves total proven and probable reservesenterprise value mc total debt tcmc market capitalizationtc total cash and cash equivalents 2p reserves are the total of proven and probable reserves proved reserves are likely to be recovered whereas probable reserves are less likely to be recovered than proved reserves the sum of proved and probable reserves is represented by 2p 