Commodities Buzz: EIA Says US Oil Producers Report Higher Revenue On Increasing Crude Oil Prices

14 Jul 2022 , 12:59 PM

The EIA noted yesterday that in first quarter of 2022 (1Q22), a total of 53 U.S. exploration and production (E&P) companies reported both higher revenue, resulting from increasing crude oil prices, and higher material and labor costs caused by supply chain limitations. According to statements in quarterly reports and investor presentations, many of these companies continue to keep capital expenditure below the 2017–19 quarterly average to allocate more funds to financing activities, such as dividends and share repurchases. As crude oil prices and returns on investment rise, the aggregate valuation for these companies has increased to just below the previous five-year (2017-21) high. EIA based its analysis of the E&P sector on the published financial reports of 53 publicly traded oil companies that produce a majority of their crude oil in the United States. As a result, our observations do not represent the sector as a whole because the analysis does not include private companies that do not publish financial reports. In 1Q22, these 53 publicly traded companies collectively produced 3.9 million barrels per day (b/d) of crude oil in the United States, or about 34% of all U.S. crude oil produced in the quarter.Powered by Commodity Insights