Author Archive: Clark Williams-Derry
Energy Finance Analyst Clark Williams-Derry served for 18 years as director of energy finance and research director for the Sightline Institute, a multi-issue sustainability think-tank based in Seattle, where his research focused on U.S. and global energy markets. He was also a senior analyst for Environmental Working Group.
IEEFA: What Australia can learn from Texas’ embrace of clean energy
In the home of U.S. oil and gas, private investors are pouring money into renewables
19 October 2020 (IEEFA Australia): The Australian government’s plan for a gas-fired economic recovery from COVID-19 ignores the market’s clear preference for renewables over fossil fuels. That’s the conclusion of a new note from the Institute for Energy Economics and Financial Analysis (IEEFA) that argues Australia could learn from the experience of U.S. oil and […]
IEEFA U.S.: Weakness of fracking accentuated by plunging cash flows during pandemic quarter
Amid increasing bankruptcies, companies outspent cash flows by more than $3 billion
September 15, 2020 (IEEFA)— A cross-section of 34 North American shale-focused producers continued a long-term losing streak in the second quarter of 2020, spending $3.3 billion more on drilling and other capital projects during the quarter than they generated from selling oil and gas. Low prices and declining sales volumes slashed revenues, leaving the fracking […]
IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers
Nine major E&P companies collectively lost more than $1 billion over past year
September 10, 2020 (IEEFA) — Even after cutting capital expenditures to their lowest quarterly point in more than six years, nine Appalachian shale-focused gas producers continued to hemorrhage money, reporting more $134 million negative free cash flows in the second quarter of 2020. Together, they have spilled $1.1 billion in red ink over the past […]
IEEFA brief: Second quarter results show that shareholder dividends pushed oil supermajors deep into red
ExxonMobil, recently kicked out of the Dow Jones Industrial Average, posted the worst performance among supermajors in Q2
August 25, 2020 (IEEFA)— One day after ExxonMobil was kicked out of the Dow Jones Industrial Average, a new analysis shows that the company suffered through one of its worst quarters in years, characterized by sharply negative free cash flows and massive borrowing to sustain its shareholder dividends. Overall, the five global oil and gas […]
IEEFA report: China unlikely to come to rescue of overbuilt U.S. LNG industry
Falling prices and shrinking demand constrain market, even before coronavirus crisis
July 29, 2020 (IEEFA) — A rebound of the ailing U.S. liquefied natural gas (LNG) industry isn’t likely to come from Chinese demand, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA). Global LNG markets have been hammered by collapsing prices, falling consumption, and an enormous supply glut in […]
IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry
Capex reductions, financial hedging offset plunging demand
June 25, 2020 (IEEFA)—Nine fracking-focused gas companies in Appalachia reported a positive free cash flow during the first quarter of 2020—but only after slashing capital expenditures and reporting significant revenues from financial hedging, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA). The positive first quarter results, however, didn’t […]
IEEFA U.S.: Four of five oil supermajors pay investor dividends even as operations losses mount
Spending on dividends and buybacks outpaces free cash flow by $216M over last decade
May 26, 2020 (IEEFA) — Four of the world’s five largest oil and gas companies spent more cash on dividends and share buybacks during the first quarter of the year than they generated from their core business operations, according to a briefing note released today by the Institute for Energy Economics and Financial Analysis (IEEFA). […]
IEEFA update: ExxonMobil’s dismal third quarter
Cash results disappoint, raising questions about dividends
ExxonMobil today posted third quarter cash results that were significantly worse than those of its four peers, Shell, Total, BP and Chevron. These disappointing results challenge the company’s repeated claims that the fundamentals of the oil and gas industry have not changed. “ExxonMobil needs a business model that manages decline, generates stable profits and contributes […]