Title page
Contents
Key findings for first-quarter 2016 2
Geographic distribution of global oil and natural gas companies, first-quarter 2016 3
Distribution of companies by production of petroleum liquids, first-quarter 2016 4
Production from the oil and natural gas companies 5
Liquids production increased 1% and natural gas production increased 0.3% in first-quarter 2016 6
Operating cash flow declined to $44 billion in first-quarter 2016 7
Capital expenditure in first-quarter 2016 totaled $68 billion, 36% lower than the first quarter of 2015 8
Investment and cash flow continued to decline amid falling oil prices 9
Cash flow and capital expenditures in first-quarter 2016 were the same for the first time since 2014 10
Higher free cash flow in first-quarter 2016 required the lowest amount of funding from asset sales, equity, or debt since 2012 11
Debt servicing payments as a share of operating cash flow increased as cash flow declined and companies refinanced 12
Net hedging assets, which tend to increase in value when oil prices decline, increased $11.6 billion since fourth-quarter 2015 13
Asset write-downs fell to $15.6 billion in first-quarter 2016, $22 billion below first-quarter 2015 14
Falling profits may result in production declines 15
Upstream investment on a per-barrel basis is the lowest since at least 2012 16
A return to the 25% ratio of upstream capital expenditure to Brent prices would require further spending cuts or an increase in prices 17
Profits for energy companies and U.S. manufacturing companies continued to decline 18
Leverage increased for U.S. manufacturing companies, but it was flat for energy companies since fourth-quarter 2015 19
Cash flow and capital expenditure may continue to decline if oil prices decline 20
Appendix: List of companies 21
Background 22
Brief description of terms 23