- U.S. oil rig counts increased by 174 percent in Q210 over the year-ago quarter to an average of 536 rigs, while U.S. gas rig counts increased 31 percent to an average of 957 rigs.
Release Date: September 21, 2010
Next Release Date: To Be Determined
- The "Financial News for Independent Energy Companies" reviews the financial performance of companies that are typically smaller than the majors and do not have integrated production/refining operations.
- While the composition of the companies in this report changes over time, the changes are usually incremental, and don't significantly affect comparisons across time periods.
- All dollar figures and comparisons are in constant second-quarter 2010 dollars unless otherwise specified.
- Ethanol producers were added to this report last quarter for the first time, and refiners have been dropped as they are covered in "Financial News for Major Energy Companies."
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|Second Quarter 2010 Key Findings|
|Net Income:||$3.4 billion||Revenues:||$28.4 billion|
Net Income for Independent Energy Companies: (back to top)
- Net income for oil and gas producers and oilfield companies combined, rebounded to $3.4 billion in the second quarter of 2010 (Q210) compared to $1.9 billion in Q209. This was driven by the large turnaround in oil and gas producer earnings, which reached their highest Q2 level over 2005-2010; this in turn was largely a result of the price increases in crude oil (28 percent) and natural gas (17 percent)
- Oilfield company net income increased 12 percent from Q209, to $2.5 billion, but remained below the Q2 average over 2005-2009.
Revenues for Independent Energy Companies: (back to top)
- Q210 revenue for oil and gas producers and oilfield companies combined increased by 12.0 percent above year ago levels and was 8.3 percent above the second-quarter average over 2005-2009.
- Oil and gas producer revenue increased 55 percent in Q210 from the year-ago quarter, to a level 47 percent above the second-quarter average over 2005-2009.
- Oilfield company revenue increased 6.7 percent in Q210 to a level 3.5 percent above the second-quarter average over 2005-2009.
Ethanol Producer Second Quarter 2010 Revenue and Net Income: (back to top)
- Revenue and income for ethanol producers in this report both increased in Q210 from the year-ago quarter: revenue was up 4.9 percent to $1.2 billion in Q210, while net income went from losses of $12 million to earnings of $29 million in Q210.
- This occurred despite a modest drop in ethanol prices in Q210 to $1.57 per gallon, as initial losses from start-up costs for many new ethanol companies began to diminish.
Supplemental Figures: (back to top)
- The U.S. total rig count increased by 61 percent to 1,508 in Q210, pushing world totals to increase 38 percent.
- Crude oil prices in Q210 were 28 percent higher than in Q209 and 3 percent higher than the average for the second quarter of 2005-2009 (in Q210 dollars).
- Natural gas prices of Q210 were 17 percent higher than in Q209, but 41 percent lower than the second-quarter average for 2005-2009 (measured in Q210 dollars).
- Ethanol prices dropped slightly in Q210 to their lowest second-quarter level over 2007-2010.
Supplemental Tables: (back to top)
|Table 1. Revenue and Net Income Summaries for Independent Energy Companies|
|Revenue||(Million Q210 Dollars)a||(Million Q210 Dollars)a|
|Oil and Gas Producers (15)b||2,644||4,130||55.1||5,488||8,553||55.9|
|Oilfield Companies (17)||21,583||23,021||6.7||45,233||44,237||-2.2|
|Ethanol Producers (13)||1,182||1,240||4.9||2,372||2,591||9.2|
|Total Revenue (45)||25,428||28,392||11.7||53,094||55,381||4.3|
|Oil and Gas Producers (15)||-313||869||377.4||-2,996||2,103||170.2|
|Oilfield Companies (17)||2,251||2,516||11.8||5,763||5,008||-13.1|
|Ethanol Producers (13)||-12||29||354.2||-77||93||221.0|
|Total Income (45)||1,927||3,415||77.2||2,690||7,204||167.8|
|a Values have been converted to constant Q210 dollars using the GDP price deflator series.|
|b The number of companies reporting revenue and net income is in parentheses.|
|Notes: Percentages are calculated from unrounded data.|
|Sources: Compiled from companies' quarterly reports to stockholders.|
|Table 2. U.S. Energy Prices|
|U.S. Energy Prices||(Q210
|Imported Crude Oil Price ($/barrel)a||57.99||74.33||28.2|
|Natural Gas Wellhead Price ($/thousand cubic feet)a||3.47||4.07||17.3|
|Ethanol Midcontinent Spot Price ($/barrel)b||1.72||1.57||-9.0|
|a Energy Information Administration, Short-Term Energy Outlook, (September 8, 2010), Table 2.|
|b Compiled from Reuters data.|
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