Revenues continue slide, losses less severe
THE TOP 20 IN NET INCOME AND STOCKHOLDERS’ EQUITY1
$1,000 Rank Company
1 ExxonMobil Corp. 1,781,000 1 ExxonMobil Corp. 178,498,000
2 Kinder Morgan CO2 Co. LP2 186,000 2 Chevron Corp. 151,476,000
3 Legacy Reserves LP 105,329 3 ConocoPhillips 39,407,000
4 Occidental Petroleum Corp. 78,000 4 Occidental Petroleum Corp. 23,789,000
5 Wexpro 26,200 5 HessCorp. 21,634,000
6 Sabine Royalty Trust 6,169 6 Marathon Oil Corp. 19,351,000
7 Permian Basin Royalty Trust 2,305 7 Anadarko Petroleum Corp. 14,701,000
8 Cross Timbers Royalty Trust 2,181 8 EOG Resources Inc. 12,405,488
9 San Juan Basin Royalty Trust 1,787 9 Devon Energy Corp. 10,508,000
10 Dorchester Minerals LP 1,498 10 Noble Energy Inc. 10,052,000
11 VOC Energy Trust 765 11 Pioneer Natural Resources Co. 9,695,000
12 — — 12 Concho Resources Inc. 6,158,772
13 — — 13 Murphy Oil Corp. 5,205,088
14 — — 14 Whiting Petroleum Corp. 4,592,700
15 — — 15 Continental Resources Inc. 4,475,120
16 — — 16 Apache Corp. 3,554,000
17 — — 17 WPX Energy Inc. 3,515,000
18 — — 18 QEP Resources Inc. 3,457,700
19 — — 19 Energen Corp. 3,076,460
20 — — 20 Cabot Oil & Gas Corp. 2,944,060
Total 2,191,234 Total 528,495,388
1Based on 1st quarter ended Mar. 31, 2016. 2Depreciation, depletion, and amortization.
DON STOWERS, EDITOR – OGFJ
LAURA BELL, STATISTICS EDITOR – OIL & GAS JOURNAL
FIRST QUARTER revenues continued
to spiral downward, but net losses
appear to be recovering a bit due to
rising commodity prices early this
year. As a group, the companies covered in the OGJ150 Quarterly Report
are still operating in the red, but net
losses were not as severe as they were
in the fourth quarter.
Still, this is the worst financial
downturn in the US petroleum industry in decades. If a recovery is on the
horizon, it’s not yet apparent to most
producers in the OGJ150 group of
companies. Even super-majors and
large independents have not been immune to the industry-wide crisis, but
the small-cap and mid-size companies have been hardest hit with many
having no choice but to sell core assets or to seek reorganization under
Chapter 11 bankruptcy proceedings.
Some industry watchers have said
that a new wave of bankruptcy filings
is likely later this year if oil prices remain under $50 a barrel.
Total revenues for the group fell to
$100.2 billion in the first quarter of
2016 compared to the same quarter
in 2015, down 31% from $145.2 billion
in 1Q15. Revenues dropped 20% from
$124 billion in the 4Q15.
This extends a downward trend
that saw revenues for the group drop
39% in the first quarter of 2015, 35%
in the second quarter, 39% in the
third quarter, 38% in the fourth quarter, and now 31% in the 1Q16.
Net income remained in the nega-
tive category. The first quarter of
2016 saw combined net losses for the
group of companies at just under $19
billion compared with net losses of
$15.2 billion in the same quarter of
2015, representing a 25% further de-
cline. However, this was a significant
improvement (68%) over the 4Q15,
which reported $58.5 billion in net
losses for the entire group.
That said, the last time the OGJ150
group had a positive income showing
was the fourth quarter of 2014 when
the companies had a positive net in-
come of $2.5 billion on total revenues
of $198.1 billion.
By press time for this issue, only
109 of the 140 publicly traded compa-
nies included in OGJ150 Quarterly
Report had reported their financial
results to the US Securities Exchange
Commission. Of these companies,
only 12 reported a positive net in-
come: Exxon Mobil Corp.; Occidental
Petroleum; Kinder Morgan CO2 Co.
LP; Freeport McMoran Inc.; Legacy
Reserves LP; Wexpro; VOC Energy
Trust; Dorchester Minerals LP; Cross
Timbers Royalty Trust; San Juan Ba-
sin Royalty Trust; Sabine Royalty
Trust; and Permian Basin Royalty
ExxonMobil accounted for 68% of
the 12 companies’ combined net in-
come of just under $2.6 billion.
In all, 89% of the 109 companies re-
ported a net loss for the quarter.
Some of those losses were substan-
tial, as you’ll see in this report. For
example, five companies reported net
losses of $1.0 billion or more.
Devon Energy reported a net loss of
$3.5 billion (rounded up) compared to
a net loss of $4.5 billion in the previous
quarter and $3.9 billion in the 3Q15.