U.S. upstream oil companies are to bank 68% higher free cash flows per barrel. This was in 2022 as surging prices fuel profits. Output growth lingers at 4.5% year to date, Deloitte consultancy said on Monday.
The study illustrates the clash between the White House and oil companies. It is over how skyrocketing profits from high energy prices.
Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) are expected to post strong upstream quarterly results on Friday, with some analysts expecting a new round of increases in dividends and buybacks.
U.S. President Joe Biden has been calling on producers to stop returning cash to shareholders. They are to invest in output to lower fuel prices for consumers.
Unlike in the past, when higher energy prices and profits would lead to increased investment rates, companies have been cutting down on costs and exercising cash discipline, Deloitte said.
Nearly 40% of surveyed executives from the top 100 oil and companies in the U.S. selected debt repayments and returning cash to shareholders as their top priorities, making those the most common answers, Deloitte Vice Chair for U.S. Oil and Gas Amy Chronis said.
Click here to read the full article
Source: Reuters
If you have further questions about the topic, feel free to contact us here.
