Title page
Contents
Key findings for second-quarter 2016 2
Geographic distribution of global oil and natural gas companies, second-quarter 2016 3
Distribution of global companies by production of petroleum liquids, second-quarter 2016 4
Production from global oil and natural gas companies 5
Global liquids production in second-quarter 2016 decreased 2.4%, and natural gas production increased 1.5% 6
Operating cash flow for these companies declined 44% from second-quarter 2015 to $54 billion in second-quarter 2016 7
Capital expenditure in second-quarter 2016 totaled $63 billion, 37% lower than in second-quarter of 2015 8
Investment and cash flow declines slowed as crude oil prices stabilized 9
Cash flow and capital expenditures have been about the same amount for the four quarters ending June 30, 2016 10
Cash from operations declined less than revenue, suggesting these companies are achieving operational efficiencies and lowering costs 11
The companies raised $76 billion from asset sales, debt issuance, and equity issuance for the four quarters ending June 30, 2016 12
Debt servicing payments as a share of operating cash flow increased as cash flow declined and companies refinanced 13
Net hedging assets, which tend to increase in value when oil prices decline, decreased $10.4 billion from first-quarter 2016 to second-quarter 2016 14
Asset write-downs fell to $9.5 billion in second-quarter 2016, $16.5 billion below second-quarter 2015 15
Falling profits for these companies contributed to liquids and natural gas production declines 16
Upstream investment on a per-barrel basis is the lowest since at least 2012 17
The ratio of upstream capital expenditures to Brent prices fell to 25% in second-quarter 2016, similar to the ratio in 2012-14 18
Profits for global energy companies in second-quarter 2016 declined from the first-quarter level, while U.S. manufacturing companies' profits were stable 19
Global energy companies' long-term debt-to-equity ratio remained at 52% for the third consecutive quarter 20
Cash flow and capital expenditure may display smaller year-over-year changes given smaller changes in crude oil prices 21
Appendix: List of companies 22
Background 23
Brief description of terms 24