•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Revenue takes a 20% dip, income down 10% in 2Q

    Don Stowers, Editor, OGFJ
    Laura Bell, Statistics Editor, Oil & Gas Journal

    Revenues in the second quarter of 2012 dropped sharply from the same quarter in 2011 – down $62.5 billion, or 20%, for the group of publicly-traded US-based companies track by Oil & Gas Journal and Oil & Gas Financial Journal. Revenues also fell from the first quarter of 2012 – down $38.5 billion, or 13%. The year-over-year numbers represent the largest decline since the onset of the 2008-2009 recession, which had a significant impact on drilling activity and earnings.

    The top 20 fastest growing companies

    The only bright spot is net income, which dipped $3.4 billion, or 10%, for the collective companies from 2Q11 to 2Q12, but rose $5.5 billion, or 21%, from the previous quarter despite the reduced revenues.

    The number of reporting companies rose slightly, from 123 to 136, in the second quarter of 2012. For these companies, total revenue was $303.1 billion, down $1.5 billion from the same quarter in 2011 but up $2 billion over the prior quarter. So the 1% change either way means that revenue growth has been essentially flat for several quarters.

    Year-to-date capital spending stood at nearly $97.2 billion for the second quarter of 2012 compared to $81.6 billion for the second quarter of 2011. This represents a 20% increase.

    Total asset value for the combined OGJ150 group of companies grew to nearly $1.298 trillion from $1.276 trillion year over year, representing about a 2% increase. However, compared to the previous quarter, asset value fell by almost $54 billion, a 4% drop.

    Stockholder equity for the entire group rose by $19.7 billion to $640.5 billion (about a 2% increase) from the 2Q2011 to the 2Q2012. However, the figure declined by nearly $7.0 billion from $647.5 billion (down about 1%) from the first quarter.

    Largest in net income

    The 20 largest companies ranked according to net income had $35.1 billion in collective net income for the second quarter of 2012. This compares with $27.3 billion the previous quarter and $33.3 billion for the second quarter of 2011.

    Once again, the $35.1 billion in net income for the top 20 companies is greater than the $32.7 billion in collective net income for the entire OGJ150 group of 136 companies. In other words, the largest 20 companies in net income represented 108% of the profits of the entire group.

    Of the 136 companies in the group, 50 showed a net loss in the income column. This represents 37% of the entire group. Among the larger companies reporting losses: No. 6 Anadarko Petroleum ($70 million); No. 14 Pioneer Natural Resources ($39.5 million); No. 19 WPX Energy ($6 million); and No. 23 Southwestern Energy ($488.1 million).

    The top 20 in spending The top 20 in total revenue The top 20  in assest - market capitalization

    In many cases, low natural gas prices were instrumental in the income loss. Since prices have rebounded a little since the second quarter and are trending upward, it is likely many of these companies will show better results when third-quarter financials are reported.

    The 10 largest companies in net income were (in order): ExxonMobil ($17.7 billion); Chevron ($7.2 billion); ConocoPhillips ($2.3 billion); Occidental ($1.3 billion); Chesapeake ($1.0 billion); Sandridge Energy ($922 million); Hess Corp. ($535 million); Devon Energy ($477 million); Continental Resources ($406 million); and EOG Resources ($396 million).

    ExxonMobil's net income of $17.7 billion amounted to approximately 54% of the total net income for the entire group of 136 companies. The top five companies in net income had about 91% of the total net income for the entire group.

    Largest in total revenue

    The top 20 companies in total revenue had $253.5 billion in revenue compared to $264.5 billion for the entire OGJ150 group of 136 companies, or roughly 96% of the total.

    The 10 largest companies in total revenue were (in order): ExxonMobil ($127.4 billion); Chevron ($62.6 billion); ConocoPhillips ($15.2 billion); Hess ($9.3 billion); Murphy Oil ($7.2 billion); Occidental ($5.8 billion); Apache ($4.0 billion); Marathon Oil ($3.8 billion); Chesapeake ($3.4 billion); and Anadarko ($3.2 billion).

    Clearly, among US-based companies in total revenue and net income, ExxonMobil Corp. is in a class by itself.

    Top companies in return on...

    Top spenders

    Spending by the top 20 companies in the second quarter continued to surge. It more than doubled from the first quarter of 2012 to the second – a 103% increase to $80.5 billion. The top 10 spenders were, in order: ExxonMobil ($16.6 billion); Chevron ($13 billion); ConocoPhillips ($7.9 billion); Occidental ($5.1 billion); Chesapeake ($5.1 billion); Devon ($4.3 billion); Hess ($3.9 billion); Apache ($3.8 billion); EOG Resources ($3.7 billion); and Anadarko ($3.6 billion).

    Fastest-growing companies

    The five fastest-growing companies, ranked by stockholders' equity, were Continental Resources (up 17.3%); PrimeEnergy Corp. (up 14.3%); Legacy Reserves LP (up 12.2%); Rosetta Resources (up 11.7%); and Concho Resources (up 10.9%).

    Continental Resources recently unveiled its newest oil field in an area of southern Oklahoma that has produced some of the state's richest discoveries. The South Central Oklahoma Oil Province, known at Continental as SCOOP, covers much of four counties in south central Oklahoma. The rock is an oil-rich portion of the Woodford Shale that lies beneath previously developed oil fields.

    Click here to download the PDF of the "OGJ150 Quarterly" 2nd Quarter ending June 30, 2012

    Most Popular

    Related Articles

    ExxonMobil sells share of Chalmette Refining in Louisiana

    06/19/2015

    ExxonMobil has reached an agreement with PBF Energy Inc. for the sale and purchase of its 50% interest in Chalmette Refining LLC in Chalmette, Louisiana.

    Seadrill Partners acquires West Polaris drillship for $540 million

    06/18/2015 Seadrill Ltd. has entered into an agreement with Seadrill Operating LP, the 58%-owned subsidiary of Seadrill Partners LLC, pursuant to which Seadrill Operating will acquire all of the shares of Sea...

    Guyana-Venezuela oil dispute heats up

    06/10/2015 The discovery of what may be significant oil deposits off the northern coast of South America has reignited a border controversy between Guyana and Venezuela, its neighbor to the west, according to...

    Conoco halts shale gas operations in Poland

    06/08/2015

    ConocoPhillips has halted its shale gas exploration in Poland because of unsatisfactory results, Reuters says.

    Alaska LNG project receives conditional authorization to export LNG to non-FTA countries

    06/01/2015 ExxonMobil says that the Alaska LNG project has marked another milestone with the June 1 announcement by the US Department of Energy that it has conditionally authorized Alaska LNG Project LLC to e...

    Oberhelman elected to ExxonMobil board

    05/28/2015

    Exxon Mobil Corp.’s shareholders have elected Doug Oberhelman to its board of directors. Oberhelman is chairman of the board of directors and CEO of Caterpillar Inc.

    More Oil & Gas Financial Articles

    ExxonMobil sells share of Chalmette Refining in Louisiana

    Fri, Jun 19, 2015

    ExxonMobil has reached an agreement with PBF Energy Inc. for the sale and purchase of its 50% interest in Chalmette Refining LLC in Chalmette, Louisiana.

    Seadrill Partners acquires West Polaris drillship for $540 million

    Thu, Jun 18, 2015

    Seadrill Ltd. has entered into an agreement with Seadrill Operating LP, the 58%-owned subsidiary of Seadrill Partners LLC, pursuant to which Seadrill Operating will acquire all of the shares of Seadrill Polaris Ltd., the entity that owns and operates the West Polaris ultra-deepwater drillship from Seadrill. The West Polaris acquisition is expected to close within seven days.

    Guyana-Venezuela oil dispute heats up

    Wed, Jun 10, 2015

    The discovery of what may be significant oil deposits off the northern coast of South America has reignited a border controversy between Guyana and Venezuela, its neighbor to the west, according to a June 9 article by PennEnergy. The border dispute had been dormant for years until Exxon Mobil Corp. announced the oil discovery about 120 miles (193 kilometers) off the country’s coast in May.

    Conoco halts shale gas operations in Poland

    Mon, Jun 8, 2015

    ConocoPhillips has halted its shale gas exploration in Poland because of unsatisfactory results, Reuters says.

    Alaska LNG project receives conditional authorization to export LNG to non-FTA countries

    Mon, Jun 1, 2015

    ExxonMobil says that the Alaska LNG project has marked another milestone with the June 1 announcement by the US Department of Energy that it has conditionally authorized Alaska LNG Project LLC to export liquefied natural gas to non-Free Trade Agreement countries.

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ