The ASX20, which composed of the 20 largest companies by market capitalisation, will be rebalanced next week, with Origin losing its place to toll road operator Transurban.
Origin shares have fallen dramatically over the past 12 months as Australia's largest gas and power retailer has struggled amid a slide in oil prices and persistent fears that it has bitten off more than it can chew with its 37.5% interest in the Australia Pacific LNG project in Queensland.
The company was trading at $5.03 this morning, down almost 1%.
There have been persistent rumours that Origin boss Grant King is looking at a demerger strategy to split the firm’s utility and oil and gas interests apart. Other rumours suggest a merger with Santos is on the cards.
Origin’s demotion means only BHP Billiton and Woodside Petroleum are flying the flag for petroleum companies in the ASX20.
In S&P’s ASX200, which is the 200 largest companies by market capitalisation, oil and gas producer AWE and would-be Brazilian oil developer Karoon Gas Australia have faced the firing squad.
Engineering firm WorleyParsons has dropped out of the ASX100, while US oiler Sundance Energy Australia has been ousted from the ASX300.
The most significant changes come in the 37-year-old All Ords, the listing of the 500 largest companies by value.
Out are AJ Lucas Group, Ausdrill, Buru Energy, Cooper Energy, Genesis Energy, Kina Petroleum, Lonestar Resources, Otto Energy and Tap Oil, to be replaced by NZ utilities Contact Energy and Meridian Energy.
The changes, part of a quarterly review of the ASX indices, will take affect after close of trading on March 18.
