{"id":53434,"date":"2020-05-23T08:11:09","date_gmt":"2020-05-23T13:11:09","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53434"},"modified":"2020-05-23T08:11:15","modified_gmt":"2020-05-23T13:11:15","slug":"big-trouble-for-the-big-three-u-s-oil-companies-financial-disaster-in-its-domestic-oil-gas-sector","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53434","title":{"rendered":"BIG TROUBLE FOR THE BIG THREE U.S. OIL COMPANIES: Financial Disaster In Its Domestic Oil &#038; Gas Sector"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/srsroccoreport.com\/big-trouble-for-the-big-three-u-s-oil-companies-financial-disaster-in-its-domestic-oil-gas-sector\/\">BIG TROUBLE FOR THE BIG THREE U.S. OIL COMPANIES: Financial Disaster In Its Domestic Oil &amp; Gas Sector<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s no better way to describe what is taking place in the U.S. Big three Oil Companies domestic oil and gas sector than a complete and utter financial disaster. Honestly, I am not exaggerating.&nbsp; The only place ExxonMobil, Chevron, and ConocoPhillips are making decent money is in their non-U.S. or International oil and gas sector.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>While it\u2019s no secret that the U.S. shale oil industry continues to be a trainwreck, the damage is now spreading deep into the financial bowels of the Big Three Oil Majors.&nbsp;<\/strong>&nbsp;Unfortunately, the largest, ExxonMobil, has the worst-performing domestic oil and gas sector in the group.&nbsp; So, it\u2019s no surprise&nbsp;that ExxonMobil was forced to borrow money just to pay dividends.&nbsp; I posted this chart in my last article on ExxonMobil:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d39ua1j16brbz0.cloudfront.net\/wp-content\/uploads\/2020\/05\/ExxonMobil-Free-Cash-Flow-Dividends-Long-Term-Debt-Q2-2019-Q1-2020.png\" alt=\"\" class=\"wp-image-21972\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">As you can see, ExxonMobil\u2019s long-term debt over the four-quarters (Q2-2019 to Q1 2020) increased nearly the same amount as the shortfall between the dividend payouts and the free cash flow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, if we look at the Big Three as a group, Q1 2020 wasn\u2019t pretty at all.&nbsp; The next chart combines ExxonMobil, Chevron, and ConocoPhillips Upstream Earnings and Capital Expenditures (CAPEX) from their U.S. sector versus their non-U.S. or International sector.&nbsp; The upstream sector refers to the company\u2019s oil and gas wells.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The Big Three suffered a net $900 million earnings loss from their U.S. upstream sector while spending a whopping $5.6 billion ($5,591 million) in CAPEX.<\/strong>&nbsp;Now compare that to the combined non-U.S. or International upstream earnings of $4.3 billion based on investing $4.6 billion in CAPEX.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d39ua1j16brbz0.cloudfront.net\/wp-content\/uploads\/2020\/05\/BIG-3-US-INT-Upstream-Earnings-vs-CAPEX-Q1-2020.png\" alt=\"\" class=\"wp-image-22081\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BIG TROUBLE FOR THE BIG THREE U.S. OIL COMPANIES: Financial Disaster In Its Domestic Oil &amp; Gas Sector There\u2019s no better way to describe what is taking place in the U.S. Big three Oil Companies domestic oil and gas sector than a complete and utter financial disaster. Honestly, I am not exaggerating.&nbsp; The only place [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[129,29808,4390,12073,846],"class_list":["post-53434","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-chevron","tag-conoco-phillips","tag-exxon","tag-srsrocco-report","tag-us-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53434"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53434\/revisions"}],"predecessor-version":[{"id":53435,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53434\/revisions\/53435"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}