I am including a handful of Foreign Corps, including the huge Royal Dutch Shell and BP, because they have substantial operations in Texas.
These 118 Texas Corps generated Total Pretax Income in 2011 of a massive $306.0 bil, up a very robust 30% from 2010, and up an even more robust 87% from 2009.
But to get to the salient Texas profit story, you need to break down these earnings between the Oil and Gas Corps and the Corps in Other Sectors.
The 62 Texas Oil and Gas Corps generated Total Pretax Income in 2011 of $255.0 bil, which comprised a massive 83% of the Total Pretax Income in 2011 of all 118 of these Texas Corps.
The 2011 Pretax Income of these 62 Texas Oil and Gas Corps increased by a very robust 37% over 2010, and by a very impressive 100% over 2009.
The Pretax Income of the 56 Texas Corps in Other Sectors was $51.0 bil, which was up only 3% over 2010, but up a very nice 42% over 2009.
So, not only do the Texas Oil and Gas Corps comprise such a huge 83% of the Profits in 2011, but even on a massive Pretax Income Base, the Texas Oil and Gas have their earnings growth in the most recent two years at a 58% higher growth rate than the Texas Non-Oil and Gas Corps.
But then to get to the more salient Texas Oil and Gas story, you need to break down these Oil and Gas Corp earnings.
The Texas Big 3 ( Exxon Mobil, Royal Dutch Shell, and BP), along with California-headquartered Chevron, dominate US Big Oil. And these Texas Big 3 generated Total Pretax Income in 2011 of a massive $164.0, which comprised a huge 64% of the Total Pretax Income in 2011 of all 62 Texas Oil and Gas Corps, and which comprised a huge 54% of the Total Pretax Income in 2011 of all of these 118 Texas Corps in all Sectors.
The Pretax Income in 2011 of the Texas Big 3 Oil and Gas increased by 32% over 2010, and by a very impressive 103% over 2009. And this happened despite BP still trying to recover from its Gulf Oil Spill. And this also happened despite the earnings base of these Big 3 Oil and Gas Corps being so gargantuan.
I think if would be very good for the US economy and for US job creation if Exxon Mobil were broken up into three parts and Chevron into two parts.
But another story here is what happened to the larger Texas Oil and Gas Corps below the Big 3.
The Next 10 Texas Oil and Gas Corps generated Total Pretax Income in 2011 of $57.9 bil, up an incredible 54% over 2010, and up an off-the-charts 144% over 2009.
A lot of this divergence in earnings growth rates between the Texas Big 3 Oil and Gas Corps and the Texas Next 10 Oil and Gas Corps occurred in the fourth quarter of 2011.
I do think it is really good for the US economy, and for US job creation, for Texas Next 10 Oil and Gas Corps to generate earnings growth that is markedly higher than that of the Texas Big 3 Oil and Gas Corps.
The Remaining 49 Texas Oil and Gas Corps had their Total Pretax Income in 2011 increase by 38% over 2010, but by an only slightly higher 43% over 2009.
In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Asset Impairments from the Ceiling Test, Gains and Losses on both Debt Retirements and Asset Dispositions, and Special Litigation Gains and Charges. I also excluded from Pretax Income AT&T’s Mark-to-Market Pension Adjustments and BP's Gulf Oil Spill Charges.
Clearly, the Obama Administration has created an economic environment that has permitted these Texas Corporations to flat-out flourish.
However, the problem with these massive profits in the Oil and Gas Industry is that it is playing havoc on the US economy and on US job creation.
The Obama Administration was spot on in its wise measures to deal with excessive oil speculation, which has added markedly to higher gas prices.
And the Obama Administration was also spot on in its attempt to eliminate the massive Tax Subsidies that Big Oil receives each year, which have turned Big Oil’s Excessive Pretax Profits into Obscene After-tax Profits.
But Big Oil controls the US Congress, and thus unfortunately for the country, the elimination of Big Oil Tax Subsidies was again defeated.
That’s why it is so important to change the makeup of the US Congress in November 2012 so that a clear majority of its members are not supporters of US Big Oil, or of US Big Financial, or of US Big Health Care.
And the Obama Administration is also spot on in its wise approach to US energy independence…..using an all-of-the-above approach. The one area that I do think should be emphasized more here is Natural Gas…..more than anything else, I think Natural Gas, with its development accompanied by both wise safety measures and strong environmental safeguards, holds the key to US energy independence, to lower gas prices, to lower business energy costs, and to National Security.
Below here is the Pretax Income (PTI) or Pretax Loss (PTL) of these 118 Texas Corps for each of the most recent three years, with the most recent fiscal year ends ranging from March 2011 to January 2012.
| Obama | |||||
| Bump | |||||
| PTI(L) | PTI(L) | ||||
| 1 Year | 2 Year | ||||
| PTI(L) | PTI(L) | PTI(L) | % | % | |
| 2011 | 2010 | 2009 | Change | Change | |
| mils $s | mils $s | mils $s | |||
| Texas | |||||
| Oil and Gas | |||||
| Big 3 | |||||
| Exxon Mobil | 73,257 | 52,959 | 34,777 | 38% | 111% |
| Royal Dutch Shell | 55,660 | 35,344 | 21,020 | 57% | 165% |
| BP | 35,092 | 36,110 | 25,124 | -3% | 40% |
| Total Big 3 | 164,009 | 124,413 | 80,921 | 32% | 103% |
| Next 10 | |||||
| ConocoPhillips | 20,994 | 13,947 | 9,582 | 51% | 119% |
| Apache | 8,093 | 5,206 | 3,144 | 55% | 157% |
| Schlumberger | 6,338 | 3,886 | 3,934 | 63% | 61% |
| Halliburton | 4,449 | 2,655 | 1,682 | 68% | 165% |
| Marathon Oil | 4,427 | 4,057 | 2,763 | 9% | 60% |
| Valero Energy | 3,322 | 1,498 | (94) | 122% | 3634% |
| National Oilwell Varco | 2,922 | 2,397 | 2,208 | 22% | 32% |
| Baker Hughes | 2,654 | 1,282 | 611 | 107% | 334% |
| EOG Resources | 2,448 | 927 | 643 | 164% | 281% |
| Anadarko Petroleum | 2,280 | 1,857 | (765) | 23% | 398% |
| Total Next 10 | 57,927 | 37,712 | 23,708 | 54% | 144% |
| Remaining 49 | |||||
| Enterprise Products Partners | 2,116 | 1,410 | 1,166 | 50% | 81% |
| Spectra Energy | 1,744 | 1,506 | 1,271 | 16% | 37% |
| HollyFrontier | 1,642 | 192 | 44 | 755% | 3632% |
| Kinder Morgan Energy Partners | 1,481 | 1,362 | 1,340 | 9% | 11% |
| Noble Energy | 1,474 | 1,175 | 340 | 25% | 334% |
| El Paso Corp | 1,298 | 1,527 | 1,250 | -15% | 4% |
| Kinder Morgan Inc | 1,182 | 468 | 1,099 | 153% | 8% |
| Diamond Offshore | 1,179 | 1,336 | 1,868 | -12% | -37% |
| Southwestern Energy | 1,051 | 995 | 856 | 6% | 23% |
| Plains All American Pipeline LP | 1,039 | 513 | 586 | 103% | 77% |
| Pioneer Natural Resources | 1,010 | 782 | (225) | 29% | 549% |
| Denbury Resources | 924 | 377 | (122) | 145% | 857% |
| Tesoro | 905 | (25) | (188) | 3720% | 581% |
| Newfield Exploration | 840 | 829 | 459 | 1% | 83% |
| Transocean Ltd | 803 | 2,043 | 4,253 | -61% | -81% |
| Cameron Intl | 794 | 733 | 643 | 8% | 23% |
| Weatherford Intl | 764 | 323 | 287 | 137% | 166% |
| Concho Resources | 746 | 286 | (36) | 161% | 2172% |
| Ensco Intl | 737 | 645 | 935 | 14% | -21% |
| Energy Transfer Partners | 716 | 633 | 804 | 13% | -11% |
| Ultra Petroleum | 711 | 723 | 341 | -2% | 109% |
| Western Refining | 650 | (43) | (38) | 1612% | 1811% |
| CVR Energy | 588 | 28 | 99 | 2000% | 494% |
| FMC Technologies | 553 | 538 | 518 | 3% | 7% |
| El Paso Pipeline Partners | 551 | 607 | 518 | -9% | 6% |
| Energy Transfer Equity LP | 545 | 405 | 707 | 35% | -23% |
| Linn Energy | 539 | (3) | (300) | 18067% | 280% |
| Patterson UTI | 511 | 191 | (52) | 168% | 1083% |
| Nabor Industries | 488 | 294 | 69 | 66% | 607% |
| Plains Exploration & Production | 462 | 263 | 130 | 76% | 255% |
| Oil States Intl | 455 | 241 | 201 | 89% | 126% |
| Noble Corp | 436 | 917 | 2,016 | -52% | -78% |
| Southern Union | 359 | 350 | 251 | 3% | 43% |
| Oceaneering Intl | 338 | 305 | 290 | 11% | 17% |
| Atwood Oceanics | 325 | 320 | 296 | 2% | 10% |
| Atmos Energy | 313 | 323 | 281 | -3% | 11% |
| W&T Offshore | 264 | 130 | (43) | 103% | 714% |
| EXCO Resources | 256 | 164 | 111 | 56% | 131% |
| C&J Energy Services | 250 | 53 | (3) | 372% | 8433% |
| Buckeye Partners | 250 | 201 | 202 | 24% | 24% |
| Targa Resources Partners | 250 | 138 | 8 | 81% | 3025% |
| Core Labs NV | 239 | 209 | 171 | 14% | 40% |
| NuStar Energy LP | 238 | 251 | 235 | -5% | 1% |
| Cabot Oil & Gas | 235 | 198 | 223 | 19% | 5% |
| Boardwalk Pipeline Partners | 220 | 290 | 163 | -24% | 35% |
| Key Energy Services | 205 | (56) | (80) | 466% | 356% |
| Kosmos Energy Ltd | 159 | (323) | (79) | 149% | 301% |
| Rowan Companies | 130 | 360 | 448 | -64% | -71% |
| Alon USA Energy | 63 | (223) | (167) | 128% | 138% |
| Total Remaining 49 | 33,028 | 23,961 | 23,146 | 38% | 43% |
| Total all 62 Oil and Gas | 254,964 | 186,086 | 127,775 | 37% | 100% |
| Non Oil and Gas | |||||
| AT&T | 20,087 | 19,957 | 18,733 | 1% | 7% |
| Dell | 4,240 | 3,350 | 2,024 | 27% | 109% |
| LyondellBasell | 3,017 | 1,340 | (1,140) | 125% | 365% |
| Texas Instruments | 2,955 | 4,551 | 2,017 | -35% | 47% |
| Kimberly Clark | 2,183 | 2,550 | 2,576 | -14% | -15% |
| Sysco | 1,827 | 1,850 | 1,771 | -1% | 3% |
| Waste Management | 1,520 | 1,631 | 1,473 | -7% | 3% |
| Fluor | 1,002 | 560 | 1,137 | 79% | -12% |
| Dr Pepper Snapple | 925 | 921 | 868 | 0% | 7% |
| Cooper Industries | 757 | 665 | 483 | 14% | 57% |
| Torchmark | 756 | 779 | 577 | -3% | 31% |
| Celanese | 755 | 538 | 251 | 40% | 201% |
| GM Financial | 622 | 353 | (48) | 76% | 1396% |
| GameStop | 620 | 621 | 589 | 0% | 5% |
| Flowserve | 588 | 530 | 585 | 11% | 1% |
| KBR | 572 | 586 | 532 | -2% | 8% |
| Whole Foods Market | 552 | 412 | 251 | 34% | 120% |
| BMC Software | 531 | 504 | 414 | 5% | 28% |
| Comerica | 530 | 315 | (115) | 68% | 561% |
| Kronos WW | 517 | 140 | (57) | 269% | 1007% |
| Alliance Data Systems | 514 | 311 | 263 | 65% | 95% |
| MetroPCS | 480 | 417 | 264 | 15% | 82% |
| Valhi | 470 | 115 | (89) | 309% | 628% |
| Fossil | 452 | 384 | 220 | 18% | 105% |
| Westlake Chemical | 401 | 343 | 79 | 17% | 408% |
| HCC Insurance | 355 | 490 | 519 | -28% | -32% |
| Chicago Bridge & Iron | 352 | 292 | 295 | 21% | 19% |
| Freescale Semiconductor | 339 | 762 | 686 | -56% | -51% |
| Sally Beauty Holdings | 336 | 228 | 165 | 47% | 104% |
| Southwest Airlines | 323 | 745 | 164 | -57% | 97% |
| Kirby | 295 | 190 | 206 | 55% | 43% |
| Cullen/Frost Bankers | 286 | 266 | 233 | 8% | 23% |
| Tenet Healthcare | 278 | 215 | 108 | 29% | 157% |
| Waste Connections | 273 | 225 | 175 | 21% | 56% |
| Darling Intl | 272 | 70 | 67 | 289% | 306% |
| Rent-A-Center | 257 | 275 | 270 | -7% | -5% |
| American National Insurance | 254 | 203 | (10) | 25% | 2640% |
| McDermott Intl | 251 | 304 | 270 | -17% | -7% |
| Service Corp | 226 | 219 | 199 | 3% | 14% |
| Cash America | 218 | 185 | 155 | 18% | 41% |
| Natural Resource LP | 216 | 154 | 114 | 40% | 89% |
| Quanta Services | 216 | 246 | 234 | -12% | -8% |
| Trinity Industries | 196 | 92 | 154 | 113% | 27% |
| Intl Bancshares | 191 | 201 | 221 | -5% | -14% |
| United Surgical Partners | 183 | 142 | 160 | 29% | 14% |
| Dresser-Rand | 182 | 216 | 312 | -16% | -42% |
| Crown Castle | 180 | 86 | (7) | 109% | 2671% |
| Dean Foods | 154 | 181 | 380 | -15% | -59% |
| Radioshack | 107 | 311 | 315 | -66% | -66% |
| Seacor Holdings | 53 | 373 | 215 | -86% | -75% |
| DR Horton | 12 | 100 | (557) | -88% | 102% |
| Commercial Metals | 9 | (205) | 2 | 104% | 350% |
| Zale | (110) | (125) | (219) | 12% | 50% |
| JC Penney | (229) | 581 | 403 | -139% | -157% |
| Clear Channel Communications | (394) | (683) | (1,136) | 42% | 65% |
| AMR | (1,148) | (506) | (1,752) | -127% | 34% |
| Total all 56 Non Oil and Gas | 51,006 | 49,556 | 35,999 | 3% | 42% |
| Total all 118 | 305,970 | 235,642 | 163,774 | 30% | 87% |
