Top 10 Oil Producers in US
Second quarter earnings are now in for most U.S. oil and gas producers. Oil prices that increased by about $15/barrel (bbl) for most producers helped push free cash flow (FCF) back into the black during Q2 for many major oil and gas producers.
FCF is a measure of the amount of cash generated by a company that is available for reinvestment or distribution to shareholders. It is generally calculated from a company’s net income, adding back depreciation and amortization (because those non-cash costs relate to historical expenditures), adjusting for impairments to oil and gas properties (those non-cash impairments are applied against net income but not cash flow) and then subtracting interest paid, changes in working capital and capital expenditures.
Here is a list of the Top 10 U.S.-based pure oil and gas producers (excludes large integrated companies like ExxonMobil XOM +1.01% and Chevron CVX +0.78%), ranked according to market capitalization at the end of Q2:
- Market Cap – Market capitalization in billions of U.S. dollars at the close of business on June 30, 2016
- EBITDA – Earnings before interest, tax, depreciation and amortization, in millions for the trailing twelve months (TTM)
- FQ – Fiscal quarter
- Debt – Net debt at the end of the most recent fiscal quarter
- FCF – Levered free cash flow in millions
- YTD Ret – Total shareholder return (TSR), including dividends, through Q2 2016
Among the Top 10, only Pioneer Natural Resources PXD +1.89%, Devon Energy DVN +3.19%, and Hess Corporation reported negative FCF for the most recent fiscal quarter. However, only EOG Resources has shown solid FCF for the trailing twelve month period (albeit prior to Q2 they had experienced two straight quarters of negative FCF).
The Top 10 has also performed well for shareholders year-to-date, with only ConocoPhillips showing a loss for the year. Overall, the 24.8% YTD return for the group was almost 10 times better than the 2.7% return of the S&P 500 through Q2.
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