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Performance Profiles of Major Energy Producers 2009


The U.S. Energy Information Administration (EIA) has released Performance Profiles of Major Energy Producers 2009 (Performance Profiles 2009), a legislatively mandated annual report to the U.S. Congress. Performance Profiles 2009 presents a comprehensive financial review and analysis of the domestic and worldwide operations of the major U.S.-based energy-producing companies. The report examines the majors' operations primarily on a consolidated corporate level, by individual lines of business and business segments, and by various geographic regions.

Major findings of Performance Profiles 2009 include:

•           Net income fell 66 percent (in constant 2009 dollars) to $30 billion in 2009 from $88 billion in 2008, the lowest level since 2002. FRS companies earned a 5-percent return on stockholders' equity (ROE) in 2009, which was 18 percentage points below the FRS average from 2004 to 2008 and 4 percentage points below the 2009 average ROE of the Census Bureau's All Manufacturing Companies.

•           Oil and natural gas production continued to be the most profitable business segment, contributing $42 billion in net income, but this was a decline of 43 percent from 2008. Return on net investment in place (ROI) fell to 7 percent in 2009 from 13 percent in 2008.

•           The refining/marketing segment reported a loss of $7 billion compared to a $14-billion gain in 2008 and the lowest ROI in the history of the FRS, negative 7 percent. Foreign refining/marketing ROI remained positive but was significantly lower, falling to 6 percent in 2009 from 26 percent in 2008.

•           Cash flow from operations decreased 41 percent from 2008 to $131 billion in 2009, led by the decline in net income. Proceeds from the sales of assets fell 52 percent from 2008 to $12 billion in 2009 as the value of assets declined in the lower price environment.

•           Expenditures for exploration, development, property acquisition, and production (E&P) decreased 24 percent from 2008 to $166 billion in 2009. The 2009 expenditure level remained higher than every year prior to 2006.

•           Worldwide production of oil (crude oil and natural gas liquids combined) by the FRS companies was up markedly in 2009, while natural gas production grew slightly. The increase in oil production was the first substantial increase since 2001. In contrast, the increase in natural gas production was the smallest since 2006. Worldwide reserve additions by the FRS companies for oil and for natural gas increased in 2009, with both growing more than 50 percent. Beginning in 2009, oil sands and other nonconventional oil production were included in the oil and natural gas production segment and contributed to a large increase in oil production in Canada.  

•           Average worldwide finding costs for FRS companies decreased to $18.31 per barrel of oil equivalent (boe) of reserves added in the 2007-2009 period compared with the 2006-2008 period, a decline of $5.79 per boe from 2008. Reversing an almost decade-long trend, worldwide total lifting costs for the FRS companies fell $1.19 per boe, to $11.51 per boe, in 2009. Total lifting costs (also called production costs) also fell in each of the FRS regions except Canada, where they rose $2.49, probably reflecting the inclusion of oil sands in 2009.

•           Capital expenditures for the FRS companies' domestic refining/marketing segment decreased 16 percent from 2008 to $22 billion in 2009 while foreign refining/marketing capital expenditures increased 2 percent. Despite the net income loss reported by domestic refining/marketing, capital expenditures in 2009 remained higher than all but 3 prior years in the survey.

The report is available on the EIA web site, at http://www.eia.gov/finance/performanceprofiles/index.htl?src=email/ .

A PDF-version of the report also is available at http://www.eia.gov/finance/performanceprofiles/pdf/020609.pdf?src-email .

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