Houston-based international independent EOG Resources Inc. posted the greatest improvement—358%—in net income among 26 international energy companies whose 2011 third-quarter profit was compared with that of their 2010 third-quarter profit. This is according to a recent report by London-based research firm Evaluate Energy.
EOG posted net income of $466.5 million in the quarter, up from $102 million a year earlier. In terms of greatest amount of third-quarter profit, integrated energy giant ExxonMobil Corp. led the 26-company group at $10.33 billion, up 41% from $7.35 billion in third-quarter 2010, the research firm reports in “Big Oil Shines Amidst Economic Gloom.”
“Earnings of this magnitude used to be a regular occurrence for the world’s largest publicly traded oil and gas company, until the credit crisis in the fourth quarter of 2008 derailed profits for the whole industry. Worryingly, however, production has also dropped for three quarters in a row, and stands 4% lower than in third-quarter 2010,” the analysts report.
Besides EOG, other U.S.-based independent E&Ps posting higher profit in the third quarter over that of a year earlier were Apache Corp. (+28%), Devon Energy Corp. (+19%) and Noble Energy Corp. (+8%). U.S.-based integrated oil companies, besides ExxonMobil, posting net-income gains were Chevron Corp. (+108%), Murphy Oil Corp. (+96%), ConocoPhillips Co. (54%) and Occidental Petroleum Corp. (+49%).
Newly independent mid- and downstream operator Marathon Petroleum Corp. posted 312% greater profit in the quarter compared with a year earlier. Its sibling, newly independent E&P operator Marathon Oil Corp., posted a 43% loss.
“The profit levels of the majors in particular offered a reminder of the heyday when oil was repeatedly trading at well above $100 per barrel and gas was trading at sub-$5, outside the imagination of most analysts.”
Share prices of the 26 energy companies, whose combined market cap is $1.6 trillion, have not reflected their profit-producing power, however, the analysts report. “Results reveal that, despite the average post-tax ROACE of the group standing at 12%, the market cap is 5% lower than in third-quarter 2009 when the ROACE stood at just 8.2% and 1% lower than third-quarter 2010, when the ROACE stood at 9.9%.”
The relatively depressed prices reflect continued negative economic sentiment worldwide. Therein is “an indication perhaps that investors have an opportunity,” the firm notes.
Recommended Reading
Infinity Natural Resources’ IPO Nets Another $37MM
2025-02-07 - Underwriters of Infinity Natural Resources’ January IPO have fully exercised options to purchase additional Class A common stock at $20 per share.
Equinor Commences First Tranche of $5B Share Buyback
2025-02-07 - Equinor began the first tranche of a share repurchase of up to $5 billion.
Mach Prices Common Units, Closes Flycatcher Deal
2025-02-06 - Mach Natural Resources priced a public offering of common units following the close of $29.8 million of assets near its current holdings in the Ardmore Basin on Jan. 31.
Rising Phoenix Capital Launches $20MM Mineral Fund
2025-02-05 - Rising Phoenix Capital said the La Plata Peak Income Fund focuses on acquiring producing royalty interests that provide consistent cash flow without drilling risk.
Alliance Resource Partners Adds More Mineral Interests in 4Q
2025-02-05 - Alliance Resource Partners closed on $9.6 million in acquisitions in the fourth quarter, adding to a portfolio of nearly 70,000 net royalty acres that are majority centered in the Midland and Delaware basins.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.