Limited hedging boosts US super-indies
Strong domestic asset bases are helping drive financial performance at Occidental and ConocoPhillips and giving pause for thought on production guidance
US super independents Occidental Petroleum and ConocoPhillips have both enjoyed their best financial quarter since the pandemic devastated energy demand and caused global supply to contract. Occidental posted its first positive net income result in over a year for Q2, while ConocoPhillips more than doubled its income compared with Q1. ConocoPhillips’ unhedged position marks it out among US E&Ps, with most taking a more cautious approach after the volatility of the past year. The company generated c.$2.8bn in free cash flow (FCF) over Q2. Occidental also managed its highest FCF, but revenues could have been even higher if the firm had not collared 630mn ft³/d (17.8mn m³/d) in gas producti
Also in this section
28 March 2024
As a gas supply shortfall looms, balancing regulatory flexibility with energy security and investor confidence will be critical
27 March 2024
Oil producers have to untangle the increasingly complicated relationship with their natural resources
26 March 2024
Strategic stocks have become as much a market management tool as a security of supply buffer, and this new tactic is likely to continue beyond the next election
25 March 2024
Low carbon intensity and sizeable projects such as Johan Castberg coming onstream in late 2024 suggest a robust outlook at least until 2030