| Analyzing Upstream Companies’ Capital Expenditure | |
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Analyzing 2015 Performance and 2016 Outlook for the Energy Sectors (Continued from Prior Part) Capital expenditure growth
The total capital expenditure of Devon Energy (DVN) grew by 99% on a YoY basis in 3Q15. The capital expenditure of EQT (EQT) and Cabot Oil and Gas (COG) grew by 39% and 24%, respectively. The capital expenditure of ConocoPhillips (COP) and EOG Resources (EOG) grew by 10% and 16%, respectively.
Capital expenditure is an important indicator for a company’s future expansion. High capital expenditure relates to high revenue expectations, whereas low capital expenditure signifies low revenue expectations in the future. Capital expenditure of upstream companies is related to the future outlook of oil. If oil is likely to remain near current levels, companies will cut their capital expenditure in 2016. A lower capital expenditure implies low growth production rates that can spur the price of crude oil. However, the above assumption remains true only when oil doesn’t find any substitution.
Moreover, Hess’s (HES) capital expenditure fell by 8% on a YoY basis in 3Q15. The total capital expenditure of the above US-based (SPY) upstream companies grew by 25.4%. The chart above shows the total capital expenditure growth of upstream companies.
Asset growth
Upstream companies’ assets grew by 7.6% on a YoY basis in 3Q15. Assets of ConocoPhillips, Apache, and HES fell by 1%, 9.2%, and 9.7%, respectively. On the other hand, assets of Pioneer Natural Resources (PXD), Devon Energy (DVN), and EQT grew by 21%, 18%, and 23%, respectively. In the next part, we will discuss the operating margin for upstream companies.
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Devon Energy Corporation
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CODE : DVN |
ISIN : US25179M1036 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Devon Energy est une société de production minière et de pétrole basée aux Etats-Unis D'Amerique. Devon Energy détient divers projets d'exploration au Canada. Son principal projet en exploration est JACKFISH OIL SANDS PROJECT au Canada. Devon Energy est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 27,6 milliards US$ (25,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 18 août 1995 à 10,00 US$, et son plus haut niveau récent le 22 février 2008 à 99,19 US$. Devon Energy possède 525 000 000 actions en circulation. |