100+ Oil Firms Write Down $92B in 1Q

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100+ Oil Firms Write Down $92B in 1Q



More than 100 global oil and natural gas companies wrote down a total of $92 billion worth of assets during the first quarter of 2020.

That’s according to a new report by the U.S. Energy Information Administration (EIA), which focused on the financial and operating trends of 102 energy firms. The report outlined that this was the highest figure since the fourth quarter of 2015.

The companies increased short-term and long-term borrowing in 1Q and grew debt by $55 billion during the period, the report revealed. This was said to be the most for any quarter during 2015 and 2020.

Just under 50 percent of companies had positive free cash flow during 1Q, according to the report, which showed that this figure stood at over 60 percent during the fourth quarter of last year. Cash from operations in 1Q was said to be 25 percent lower than 1Q 2019 and capital expenditure in 1Q was said to be nine percent lower than in 1Q 2019.

The report outlined that 1Q crude oil prices were 20 percent lower than in 1Q 2019 and that natural gas prices decreased 35 percent during the same period. The 102 companies in the study increased their combined liquids production by 3.7 percent and decreased their natural gas production by 0.1 percent from 1Q 2019 to 1Q 2020, according to the report.

Data from the report is derived from the public financial statements each company publishes. Companies referenced in the report include BP plc, Chevron Corporation, ConocoPhillips Corporation, Eni S.p.A., ExxonMobil Corporation, Royal Dutch Shell plc and Total S.A.

The EIA is the statistical and analytical agency within the U.S. Department of Energy. The organization is said to be the nation's premier source of energy information and, by law, its data, analyses, and forecasts are independent of approval by any other officer or employee of the U.S. government.

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