• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 55 mins Waste-to-Energy Chugging Along
  • 3 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 2 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 8 hours Venezuela continues to sink in misery
  • 9 hours Regular Gas dropped to $2.21 per gallon today
  • 7 hours Zohr Giant Gas Field Increases Production Six-Fold
  • 6 hours No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 3 hours UK Power and loss of power stations
  • 34 mins What will the future hold for nations dependent on high oil prices.
  • 19 hours Air-to-Fuels Energy and Cost Calculation
  • 17 hours $867 billion farm bill passed
  • 15 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 3 hours EPA To Roll Back Carbon Rule On New Coal Plants

Speculators And Analysts Grow More Bearish On Oil

Friday, August 5 2016

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. Cash flow negative after dividends

 

(Click to enlarge)

- The oil majors are not generating enough cash to fund both their capex and their hefty dividend payments.
- All of the oil majors are having to take on debt in order to keep their dividends at such high levels. Only ExxonMobil (NYSE: XOM) was slightly cash flow positive over the past 12 months, but that excludes payouts to shareholders. After including dividends, Exxon had negative cash flow of $12 billion.
- The majors are plugging the deficit with more debt. Exxon saw its debt jump from $33.8 billion last year to $44.5 billion at the end of 2Q2016.
- Shell’s (NYSE: RDS.A) debt-to-equity ratio is the worst, rising close to 30 percent. BP’s (NYSE: BP) debt ratio is not far behind at about 25 percent. Debt ratios are sharply up from 2015.

2. Dividend yields too high?

 

(Click to enlarge)

- The poor earnings from the oil majors is putting renewed scrutiny on their generous dividend payouts. Companies are taking on more and more debt to pay shareholders, but that cannot continue forever.
- The cash flow of the five largest…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




Oilprice - The No. 1 Source for Oil & Energy News