1998 FRS Companies

Amerada Hess Corporation

Amoco Corporation

Anadarko Petroleum Corporation

Atlantic Richfield Company

BP America, Inc.

Burlington Resources, Inc.

Chevron Corporation

CITGO Petroleum Corporation*

Clark Refining and Marketing, Inc.*

Coastal Corporation

Conoco, Inc.

Enron Corporation

Equilon Enterprises, LLC*

Exxon Corporation

Fina, Inc.

Kerr-McGee Corporation

Lyondell-CITGO Refining, LP*

Mobil Corporation

Motiva Enterprises, LLC*

Occidental Petroleum Corporation

Phillips Petroleum Company

Shell Oil Company

Sonat, Inc.

Sunoco, Inc.*

Tesoro Petroleum Corporation*

Texaco, Inc.

Tosco Corporation*

Ultramar Diamond Shamrock Corporation*

Union Pacific Resources Group

Unocal Corporation

USX Corporation

Valero Energy Corporation*

Williams Companies, Inc.*

* = New survey entrant in 1998 Source: Energy Information Administration

From a record high in 1997, the net income of the major U.S. energy companies included in the Energy Information Administration's Financial Reporting System (FRS) fell 61 percent in 1998, according to Performance Profiles of Major Energy Producers, 1998. A precipitous drop in oil prices helped drive the decline, and the profitability of the FRS companies' holdings in oil and natural gas production hit its lowest point in 22 years.

Despite the decline in earnings and cash flow (their main source of funds), the FRS companies' capital expenditures reached a 14-year high of $75 billion in 1998. Mergers and acquisitions--several of which involved oil and gas production assets and were completed before the oil price collapse--accounted for $21 billion of the capital outlays. Ongoing commitments to long-term development projects also contributed to capital spending.

The $27-billion gap between spending and cash flow forced the FRS companies to postpone some debt reduction, borrow additional funds, sell assets, reduce shareholder dividends, and draw down cash reserves by $4.4 billion. A private survey of oil and gas producers suggests that substantial reductions in exploration and development spending may be in store.

The general trend toward energy deregulation has raised the profile of natural gas and electricity in FRS company operations. In 1991 three FRS companies had significant interstate gas pipeline assets; by 1998 that number had grown to five, all of which also owned or planned to acquire electricity assets. Another three FRS companies have electricity operations.

Performance Profiles presents a comprehensive financial review and analysis of the domestic and foreign activities of the major U.S.-based energy companies. To capture changes in the evolving industry, the 1998 FRS survey selection criteria were modified to broaden the sample, resulting in the inclusion of 11 new respondents. The combined assets of all surveyed companies represented 85 percent of domestic refining capacity in 1998.

Performance Profiles of Major Energy Producers, 1998, DOE/EIA-0206(98); 258 pages, 79 tables, 31 figures (in PDF format). This report is available only via the Internet.

Questions about the report's content should be directed to:

Jon Rasmussen, Office of Energy Markets and End Use

jon.rasmussen@eia.doe.gov

Phone: (202) 586-1449

For general information about energy, contact the National Energy Information Center at 202-586-8800 or infoctr@eia.doe.gov.

URL: http://www.eia.doe.gov/emeu/plugs/plppm98.html
File last modified: April 3, 2001