Revenue up 3%, income 13% from 1Q
DON STOWERS, EDITOR - OGFJ
LAURA BELL, STATISTICS EDITOR - OIL & GAS JOURNAL
Revenues and net income for the group of publicly-traded US-based companies tracked by Oil & Gas Journal and Oil & Gas Financial Journal continued their upward trend in the second quarter of 2014. Total revenue grew by nearly $5.8 billion (3%) from the previous quarter and by almost $3.6 billion (2%) from the same quarter in 2013. Net income increased approximately $2.6 billion (13%) from the prior quarter but fell more than $3.8 billion (14%) from the second quarter of last year, reflecting higher drilling and production costs for many companies in the group and lower price margins.
The number of reporting companies grew by six to 129 in the second quarter. Seventeen companies on the OGJ150 failed to report their earnings to the US Securities Exchange Commission by press time for this issue.
Year-to-date capital spending stood at just over $103.6 billion so far this year, up nearly $7.2 billion from the same quarter in 2013, about an 8% increase.
Total asset value for the group of reporting companies grew to nearly $1.473 trillion compared to $1.436 trillion for the previous quarter, representing about a 3% rise in value. Total assets were up slightly more than $84 billion over the second quarter of 2013, about a 6% increase year over year.
Stockholder equity for the entire group grew by $51.1 billion (8%) from the same quarter in 2013 and by more than $22.7 billion (4%) from the previous quarter.
Largest in net income
The largest 20 companies ranked according to net income had just over $24 billion in collective net income for the second quarter of 2014. This compares with $24.6 billion for the same quarter in 2013 and $23 billion the previous quarter. The latest numbers represent an increase of about 5% over the prior quarter, but a decline of slightly more than half a billion dollars (3%) year over year.
The top four companies, each reporting profits in the billions of dollars, are ExxonMobil Corp. ($9.1 billion), Chevron Corp. ($5.7 billion), ConocoPhillips ($2.1 billion), and Occidental Petroleum ($1.4 billion). Exxon's income was down about 3% from the first quarter of 2014. Chevron, on the other hand, increased its net income 26% from the previous quarter. Conoco's income dipped by 2%, and Occidental's net income grew by 3%.
Collectively, the top 20 companies grew their net income by a little more than $1 billion in the second quarter - up about 5%.
New companies added to the top 20 in net income this quarter are No. 11 Anadarko Petroleum with $266 million in income; No. 16 Range Resources with more than $171 million in income; and No. 17 Whiting Petroleum with $151 million in income.
Three companies dropped out of the top 20 in net income this quarter: Newfield Exploration, which was No. 12 in the first quarter; No. 15-ranked Continental Resources; and No. 20 Pioneer Natural Resources. Newfield reported a $22 million net loss for the quarter; Continental Resources reported $103.5 million in income; and Pioneer Natural Resources reported $1 million in net income.
The top 20 companies' total net income of $24 billion topped the income for the entire group of 129 reporting companies by $458 million because many of the smaller companies reported losses. Of the reporting companies this quarter, 49 (38%) reported a net loss. The largest companies reporting losses were No. 15 ranked Linn Energy ($208 million); No. 18 Denbury Resources ($55.2 million); No. 20 QEP Resources ($87.3 million); No. 22 Newfield Exploration ($22 million); and No. 25 WPX Energy ($133 million).
Four of the top 40 companies as ranked by total assets reported losses for the second consecutive quarter: No. 15 Linn Energy; No. 29 SandRidge Energy; No. 31 Halcon Resources; and No. 37 BreitBurn Energy Partners.
Largest in total revenue
The top 20 companies in total revenue had $229 billion in total revenue for the second quarter compared to $223.2 billion for the prior quarter and $226.2 billion for the second quarter of 2013. The former represents about a 3% increase and the latter a 2% increase in total revenue.
The top 20 companies in total revenue did not change from the first quarter of 2014 to the second quarter, although they did move around a bit in the rankings. Ten of the companies saw a revenue increase over the quarter, while ten (ConocoPhillips, Anadarko, Hess Corp., Apache, Marathon Oil, Freeport McMoRan, Southwestern Energy, Pioneer Natural Resources, Continental Resources, and WPX Energy saw declines.
Total revenue for the entire OGJ150 group was $242.5 billion, so the top 20 companies, with billions in revenues, had 94% of the revenues for the collective group of 129 companies.
The top four companies in total revenue (ExxonMobil, Chevron, ConocoPhillips, and Occidental) together took in $191.1 billion, which represents approximately 78% of the total revenue for the entire group.
Top spenders
Spending by the top 20 companies in the second quarter of 2014 grew to more than $84 billion (year to date). This was up about 4% over the $81.2 billion spent YTD in the second quarter of 2013.
Top spenders were, in order: Chevron ($17.5 billion), ExxonMobil ($16.6 billion), ConocoPhillips ($8.1 billion), Anadarko ($5.1 billion), Occidental ($4.9 billion), Apache ($4.9 billion), EOG Resources ($3.7 billion), Devon Energy Corp. ($3.3 billion), Hess Corp. ($2.3 billion), and Noble Energy Inc. ($2.3 billion).
Fastest-growing companies
The fastest-growing company, ranked by stockholders' equity, for 2Q2014 was Matador Resources Co., which saw a 34.3% increase in value. Dallas-based Matador is ranked No. 68 on the OGJ150, according to total assets.
Matador is an independent E&P company engaged in the exploration, development, production, and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Company operations are focused primarily on the oil and liquids-rich portion of the Eagle Ford shale play in South Texas and the Wolfcamp and Bone Spring plays in the Permian Basin in Southeast New Mexico and West Texas. The company also operates in the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas and has acreage in Southwest Wyoming and adjacent areas of Utah and Idaho. Joseph Wm. Foran founded Matador in July 2003 and serves as chairman of the board, CEO, and secretary of the company. He is also the largest shareholder.
No. 92-ranked Ring Energy, Midland, Texas, saw a 30.8% rise in value, and No. 26-ranked Range Resources of Fort Worth recorded a 23.3% increase in value.
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