In a recent post, I showed how the 6 largest US Big Oil Corps, which dominate, have continued to generate monster earnings growth, which even reaccelerated in the 3Q 2011.
These 6 US Big Oil Corps generated Pretax Income growth of 57% in the 3Q 2011 over the previous year’s 3Q. And this spectacular earnings growth was on the back of precisely the same 57% earnings growth in annual 2010 over the previous year.
When I compound 57% annual earnings growth over a two-year period, I get an increase of an incredible 146%.
Further, this 57% earnings growth of these 6 Big Oil Corps in the 3Q 2011 was an acceleration of their 44% earnings growth in the 2Q 2011.
And all of the Republicans, and even some Democrats, in the US Congress want to know why the Occupy Movement, as well as their 99% supporters, are concerned about the outsized profits of the US Big Oil Industry, which is earned on the backs of the 99%ers, and which is causing absolute havoc on the US economy, on US small and medium-sized businesses, on US job creation, and on the middle class trying to attain a livable wage and struggling to make ends meet?
Sky high energy costs are devastating the US economy, and have continued to do so, and on an increasingly accelerating and intensive basis, all throughout the past decade.
Below here are these 3Q 2011 Pretax Earnings (PTI), along with a comparison to the prior year’s 3Q 2010 amounts. I’ve included Royal Dutch Shell and BP, since they have such substantial US operations.
............................................PTI..........PTI...........................
............................................3Q............3Q..........Increase....
..........................................2011........2010.....Amount....%..
............................................(millions of dollars)
Big Oil 6 That Rule
Exxon Mobil....................18,680.....12,858......5,822....45%
Chevron..........................13,340.......6,873......6,467....94%
Royal Dutch Shell............12,538.......5,385......7,153...133%
BP(1)................................7,560.......7,247.........313......4%
ConocoPhillips(2).............5,180.......3,876......1,304....34%
Occidental Petroleum.......2,862.......2,025.........837....41%
Total all 6.......................60,160.....38,264.....21,896....57%
(1) BP PTI excludes Non-operating Items, primarily the Gulf Oil Spill Response Charges.
(2) ConocoPhillips 2010 PTI excludes large Gains on Asset Dispositions.
So, let me turn my attention to the Rest of US Big Oil, the Corps, along with several Partnerships, which generated more than $100 mil of Pretax Income in either the 3Q 2011 or in the 3Q 2010. Amazingly, there were 49 of these, which have reported their 3Q 2011 earnings so far through today, Friday, November 4, 2011.
The Rest of US Big Oil couldn’t possibly be doing nearly as well in the 3Q 2011 as the monster 57% earnings growth of the 6 Big US Oil Corps That Rule.
Well, guess again. They actually did much better. Their Total Pretax Income growth was an incredible 72% in the 3Q 2011. No, that is not a misprint.
And this 72% earnings growth is an acceleration of the monstrous 59% growth earned by these same Rest of Big Oil Corps in the 2Q 2011.
Also, the Top 7 Rest of Big Oil Corps (Combined Marathon, Apache, Valero Energy, Schlumberger, Devon Energy, Chesapeake Energy, and Halliburton) generated a 3Q 2011 earnings increase of an off-the-charts 107%.
The Occupying Movement, as well as their 99% supporters, have to be outraged, not just mainly at the 6 US Big Oil Corps, but also at the huge Rest of US Big Oil Corps.
Below here are these 3Q 2011 Pretax Earnings (PTI), along with a comparison to the prior year’s 3Q 2010 amounts, of these 49 Rest of US Big Oil Corps.
....................................................PTI........PTI.........Increase........
....................................................3Q..........3Q........(Decrease)......
..................................................2011......2010.....Amount....%....
........................................................(millions of dollars)
Rest of US Big Oil Corps
Marathon Petroleum.................1,744........439.....1,305....297%
Marathon Oil.............................1,303.....1,034........269......26%
Total Marathon.........................3,047.....1,473.....1,574....107%
Apache.....................................2,094.....1,337........757......57%
Valero Energy...........................1,892........488.....1,404....288%
Schlumberger(1).......................1,717.......670.....1,047....156%
Devon Energy...........................1,538........699........839....120%
Chesapeake Energy...................1,511........907........604......67%
Halliburton...............................1,261........735........526......72%
Total Top 7 Rest of Big Oil......13,060.....6,309......6,751....107%
Natl Oilwell Varco......................780........573........207......36%
Baker Hughes.............................719........366.........353......96%
Hess(2)......................................571........673........(102)...(15)%
Tesoro.......................................562..........94.........468.....498%
Murphy Oil................................534........353.........181......51%
Enterprise Prods Partners LP....491.........353.........138......39%
El Paso Corp(3).........................430........362...........68......19%
EOG Resources(4).....................417........188..........229.....122%
Williams Companies(5).............402........310...........92......30%
Noble Energy(6).......................400........298.........102......34%
Kinder Morgan Energy LP(7)....396........336...........60......18%
Spectra Energy.........................382........287...........95......33%
Diamond Offshore.....................335........299...........36......12%
Plains All Amer Ppln LP............294..........80.........214.....268%
Southwestern Energy...............290........264...........26......10%
Weatherford Intl......................275........153.........122......80%
Ensco Intl................................248.........161...........87......54%
Denbury Resources(8).............233..........84.........149.....177%
Cimarex Energy.......................205........204............1.........0%
Cameron Intl............................198........185...........13........7%
OneOK......................................195........150...........45......30%
Whiting Petroleum(9)...............193........126...........67......53%
Enbridge Energy Partners(10)..193..........95...........98.....103%
Concho Resources(11)..............192..........90.........102.....113%
Continental Resources(12).......173..........88...........85......97%
Pioneer Natural Res(13)...........171..........46.........125.....272%
Anadarko Petroleum(14)..........170.........86...........84......98%
FMC Technologies....................167........114...........53......46%
Newfield Exploration(15).........162........123...........39......32%
QEP Resources.........................162........116...........46......40%
Noble Corp..............................153........107...........46......43%
Energy Transfr Partnrs LP(16).149........109...........40......37%
RPC.........................................133.........74............59......80%
Patterson UTI..........................129.........47...........82....174%
Oil States Intl...........................129.........67...........62......93%
Plains Exploration&Prod(17)...126.........72...........54......75%
Transocean Ltd(18).................125........486........(361)...(74)%
El Paso Pipline Partners LP......118........120...........(2).....(2)%
Ultra Petroleum(19)................117........101...........16......16%
Nabors Industries...................116........(36).........152....422%
Magellan Midstream Partners..111.........57............54......95%
Oceaneering Intl.....................109.........88............21......24%
Total all 49........................24,515....14,258....10,257.....72%
(1) Schlumberger 2010 PTI excludes large gain on investment.
(2) Hess 2011 PTI excludes large asset impairment charges. Its 2010 PTI excludes both large gains on asset sales and large asset impairment charges.
(3) El Paso Corp 20ll PTI excludes large loss on deconsolidation of subsidiary, loss on debt extinguishment, and asset impairment charges. It 2010 PTI excludes loss on debt retirement.
(4) EOG Resources 2011 PTI excludes large derivative gains, gains on asset disposals, and asset impairment charges. Its 2010 PTI excludes derivative gains, gains on asset disposals, and asset impairment charges.
(5) Williams Companies 2010 PTI excludes large asset impairment charges.
(6) Noble Energy 2011 PTI excludes large gains on derivatives.
(7) Kinder Morgan Energy LP 2011 PTI excludes loss on investment remeasurement.
(8) Denbury Resources PTI excludes derivative gains and losses.
(9) Whiting Petroleum PTI excludes derivative gains and losses.
(10) Enbridge Energy Partners PTI excludes large environmental charges.
(11) Concho Resources PTI excludes derivative gains and losses.
(12) Continental Resources excludes derivative gains and losses.
(13) Pioneer Natural Resources PTI excludes derivative gains.
(14) Anadarko Petroleum 2011 PTI excludes large Deepwater Horizon settlement charge and loss on derivatives.
(15) Newfield Exploration PTI excludes derivative gains.
(16) Energy Transfer Partners LP 2011 PTI excludes derivative losses.
(17) Plains Exploration & Production 2011 PTI excludes loss on investment remeasurement and gains on derivatives. Its 2010 PTI excludes gains on derivatives.
(18) Transocean Ltd 2011 PTI excludes loss on derivatives.
(19) Ultra Petroleum PTI excludes derivative gains.
The Occupy Movement, including all of their many 99%er supporters, are watching the US Deficit Reduction Super-Committee deliberations very closely. I think the Occupy Movement would be very disappointed if the US Big Oil Industry continued to get these massive tax subsidies, and also was able to pay such an incredibly low effective US Federal Income Tax Rate on their massive amount of Worldwide Income, that keeps growing by leaps and bounds. And the same goes for all Big Multinational Corps.
Also, I think that the Occupy Movement expects wise, effective initiatives to be enacted by the US Congress as a whole, to stem the tide of these sky-high energy costs, which are so devastating to the US economy, to US small and medium-sized businesses, and to US job creation.
