So why has Beto O’Rourke hit such a nerve in the deep
red state of Texas?
No doubt his charisma, civility and compassion are unique
personality traits that many Texans don’t now see in their government leaders.
And Texans and the entire country are desperately
seeking these key traits in their leaders.
But there’s more to this story.
Being from El Paso, my hunch is that Beto has observed
that people there are generally not doing nearly as well economically as they
are in Houston and other heavy oil & gas patches in Texas.
And Beto has also seen this huge economic disparity in his campaign rallies in every county in Texas.
And Beto has also seen this huge economic disparity in his campaign rallies in every county in Texas.
Let me put some numbers to these feelings.
From a review of US SEC files, there were 96 Oil &
Gas Companies headquartered in Texas with stock market caps of more than $1 bil
recently and which have either December or January fiscal year ends (FYE).
These 96 Texas Oil & Gas Cos posted Audited Gold-Standard
US GAAP Total Pretax Income From Continuing Operations of $32.9 bil in 2017, an
increase of an amazing $58.6 bil from their similar Total Pretax Loss of $25.7
Bil in 2016.
When companies in a single industry achieve such
incredibly off-the-charts earnings increases, which have even continued to
increase to the same degree in the first half of 2018, all Texans directly
involved in the Texas Oil & Gas industry do much better economically.
But what about all the other many Texans?
Well, also from a review of US SEC files, there were 111
Non-Oil & Gas Companies headquartered in Texas with stock market caps of more
than $1 bil recently and which have either December or January fiscal year ends
(FYE).
These 111 Texas Non-Oil & Gas Cos posted Audited Gold-Standard
US GAAP Total Pretax Income From Continuing Operations of $59.8 bil in annual 2017,
amazingly a decline of $3.8 bil or a decline of 5.9% from their similar Total Pretax Income
of $63.6 Bil in 2016.
Further, in the two previous years (2016 and 2015),
these same 111 Texas Non-Oil & Gas Companies experienced robust increases
in their similar Total Pretax Earnings over the immediately preceding years.
When the US Administration and the US Congress pick and choose economic winners and losers, you end up further dividing the country like what has clearly happened in Texas.
My Focus is on Pretax Income Rather Than After-Tax Net Income Because Income Taxes are Simply a Transfer of Financial Wealth Between US Corporations and the US Federal, US State and Foreign Governments. It Has Nothing Whatsoever to do with Company Operating Performance.
When the US Administration and the US Congress pick and choose economic winners and losers, you end up further dividing the country like what has clearly happened in Texas.
My Focus is on Pretax Income Rather Than After-Tax Net Income Because Income Taxes are Simply a Transfer of Financial Wealth Between US Corporations and the US Federal, US State and Foreign Governments. It Has Nothing Whatsoever to do with Company Operating Performance.
From US SEC company filings, the below chart shows the
Audited by predominately prestigious Big 4 CPA firms gold-standard US GAAP
Pretax Income (Loss) From Continuing Operations of each of these 96 Texas Oil
& Gas Cos and 111 Texas Non-Oil
& Gas Cos for FYE annual 2017 and 2016.
| 2017 | 2016 | ||||
| Audited | Audited | ||||
| Pretax | Pretax | ||||
| Income | Income | ||||
| (Loss) | (Loss) | ||||
| Texas Companies | From | From | |||
| Stock Market Caps Above $1 Bil | City | State | 2017 | Continuing | Continuing |
| With December and January Year Ends | HQs | HQs | FYE | Operations | Operations |
| $ mils | $ mils | ||||
| Oil & Gas Companies | |||||
| Exxon Mobil | Irving | TX | Dec 17 | 18,674 | 7,969 |
| Phillips 66 | Houston | TX | Dec 17 | 3,555 | 2,191 |
| Valero Energy | San Antonio | TX | Dec 17 | 3,207 | 3,182 |
| Enterprise Products Partners LP | Houston | TX | Dec 17 | 2,881 | 2,576 |
| Kinder Morgan | Houston | TX | Dec 17 | 2,161 | 1,638 |
| Andeavor | San Antonio | TX | Dec 17 | 1,115 | 1,277 |
| Energy Transfer Partners LP | Dallas | TX | Dec 17 | 1,005 | 397 |
| Occidental Petroleum | Houston | TX | Dec 17 | 971 | (1,845) |
| Southwestern Energy | Spring | TX | Dec 17 | 953 | (2,672) |
| Apache Corp | Houston | TX | Dec 17 | 918 | (1,682) |
| Plains All America | Houston | TX | Dec 17 | 902 | 755 |
| Concho Resources | Midland | TX | Dec 17 | 881 | (2,338) |
| HollyFrontier | Dallas | TX | Dec 17 | 869 | (172) |
| Spectra Energy Partners | Houston | TX | Dec 17 | 722 | 1,257 |
| Energy Transfer Equity LP | Dallas | TX | Dec 17 | 710 | 204 |
| Enbridge Energy Partners LP | Houston | TX | Dec 17 | 700 | 115 |
| Halliburton | Houston | TX | Dec 17 | 682 | (7,625) |
| Technip FMC plc | Houston | TX | Dec 17 | 680 | 551 |
| EOG Resources | Houston | TX | Dec 17 | 661 | (1,558) |
| Western Gas Partners | The Woodlands | TX | Dec 17 | 583 | 611 |
| Cheniere Energy Inc | Houston | TX | Dec 17 | 566 | (663) |
| Phillips 66 Partners LP | Houston | TX | Dec 17 | 528 | 410 |
| Diamondback Energy | Midland | TX | Dec 17 | 497 | (165) |
| Buckeye Partners LP | Houston | TX | Dec 17 | 495 | 550 |
| Cheniere Energy Partners LP | Houston | TX | Dec 17 | 490 | (171) |
| Shell Midstream Partners LP | Houston | TX | Dec 17 | 392 | 378 |
| Newfield Exploration | The Woodlands | TX | Dec 17 | 386 | (1,208) |
| Andeavor Logistics LP | San Antonio | TX | Dec 17 | 373 | 315 |
| Pioneer Natural Resources | Irving | TX | Dec 17 | 309 | (959) |
| Boardwalk Pipeline Partners LP | Houston | TX | Dec 17 | 298 | 303 |
| Hess Midstream Partners LP | Houston | TX | Dec 17 | 285 | 205 |
| TC Pipelines LP | Houston | TX | Dec 17 | 264 | 264 |
| Valero Energy Partners LP | San Antonio | TX | Dec 17 | 240 | 190 |
| FTS Intl | Fort Worth | TX | Dec 17 | 202 | (190) |
| Holly Energy Partners LP | Dallas | TX | Dec 17 | 202 | 158 |
| Noble Midstream Partners LP | Houston | TX | Dec 17 | 164 | 114 |
| NuStar Energy LP | San Antonio | TX | Dec 17 | 158 | 162 |
| Black Stone Minerals LP | Houston | TX | Dec 17 | 157 | 20 |
| Enlink Midstream Partners LP | Dallas | TX | Dec 17 | 131 | (572) |
| Parsley Energy | Austin | TX | Dec 17 | 130 | (106) |
| Matador Resources | Dallas | TX | Dec 17 | 130 | (98) |
| EnLink Midstream LLC | Dallas | TX | Dec 17 | 123 | (884) |
| Texas Pacific Land Trust | Dallas | TX | Dec 17 | 120 | 55 |
| Cheniere Energy Partners LP LLC | Houston | TX | Dec 17 | 118 | 18 |
| RSP Permian | Dallas | TX | Dec 17 | 115 | (44) |
| Viper Energy Partners LP | Midland | TX | Dec 17 | 111 | (11) |
| Core Laboratories NV | Houston | TX | Dec 17 | 102 | 75 |
| Rowan Companies plc | Houston | TX | Dec 17 | 99 | 326 |
| BP Midstream Partners LP | Houston | TX | Dec 17 | 94 | 75 |
| Carrizo Oil & Gas | Houston | TX | Dec 17 | 91 | (675) |
| CV Refining LP | Sugar Land | TX | Dec 17 | 89 | 15 |
| Apergy | The Woodlands | TX | Dec 17 | 89 | (19) |
| Summit Midstream Partners LP | The Woodlands | TX | Dec 17 | 86 | (38) |
| Hi-Crush Partners LP | Houston | TX | Dec 17 | 83 | (85) |
| Range Resources | Fort Worth | TX | Dec 17 | 82 | (802) |
| Cactus | Houston | TX | Dec 17 | 68 | (7) |
| W&T Offshore | Houston | TX | Dec 17 | 67 | (292) |
| Denbury Resources | Plano | TX | Dec 17 | 47 | (1,520) |
| Penn Virginia | Houston | TX | Dec 17 | 28 | (96) |
| ProPetro Holding | Midland | TX | Dec 17 | 16 | (81) |
| USA Compression Partners LP | Austin | TX | Dec 17 | 12 | 13 |
| WildHorse Resource Development | Houston | TX | Dec 17 | 11 | (53) |
| Alta Mesa Resources | Houston | TX | Dec 17 | 4 | (0) |
| CVR Energy | Sugar Land | TX | Dec 17 | - | (11) |
| C&J Energy Services | Houston | TX | Dec 17 | (17) | (1,018) |
| Oceaneering Intl | Houston | TX | Dec 17 | (18) | 43 |
| Helix Energy Solutions Group | Houston | TX | Dec 17 | (20) | (94) |
| Diamond Offshore Drilling | Houston | TX | Dec 17 | (21) | (468) |
| Select Energy Services | Houston | TX | Dec 17 | (36) | (314) |
| Keane Group | Houston | TX | Dec 17 | (36) | (187) |
| Archrock | Houston | TX | Dec 17 | (43) | (89) |
| NOW Inc | Houston | TX | Dec 17 | (52) | (230) |
| Forum Energy Technologies | Houston | TX | Dec 17 | (55) | (138) |
| Dril-Quip | Houston | TX | Dec 17 | (66) | 116 |
| Oasis Petroleum | Houston | TX | Dec 17 | (76) | (372) |
| Oil States Intl | Houston | TX | Dec 17 | (77) | (73) |
| Frank's Intl NV | Houston | TX | Dec 17 | (87) | (182) |
| Crestwood Equity Partners LP | Houston | TX | Dec 17 | (167) | (192) |
| Baker Hughes GE | Houston | TX | Dec 17 | (171) | 584 |
| Kosmos Energy Ltd | Dallas | TX | Dec 17 | (178) | (295) |
| Ensco plc | Houston | TX | Dec 17 | (196) | 998 |
| Cabot Oil & Gas | Houston | TX | Dec 17 | (228) | (660) |
| Tellurian | Houston | TX | Dec 17 | (231) | (97) |
| Targa Resources | Houston | TX | Dec 17 | (293) | (260) |
| Patterson-UTI Energy | Houston | TX | Dec 17 | (328) | (496) |
| Superior Energy Services | Houston | TX | Dec 17 | (378) | (1,100) |
| National Oilwell Varco | Houston | TX | Dec 17 | (392) | (2,623) |
| Noble Corp plc | Houston | TX | Dec 17 | (412) | (937) |
| Marathon Oil | Houston | TX | Dec 17 | (454) | (1,164) |
| Nabors Industries | Houston | TX | Dec 17 | (580) | (1,198) |
| Schlumberger Ltd | Houston | TX | Dec 17 | (1,183) | (1,905) |
| Anadarko Petroleum | The Woodlands | TX | Dec 17 | (1,688) | (3,829) |
| Noble Energy | Houston | TX | Dec 17 | (2,191) | (1,772) |
| ConocoPhillips | Houston | TX | Dec 17 | (2,615) | (5,530) |
| Weatherford Intl plc | Houston | TX | Dec 17 | (2,656) | (2,877) |
| Transocean Ltd | Houston | TX | Dec 17 | (3,003) | 934 |
| Total all 96 Oil & Gas Cos | 32,934 | (25,698) | |||
| Pretax Income Increase 2017 vs 2016 | |||||
| ………. mils of $s | 58,632 | ||||
| ………. % | 228% | ||||
| Non-Oil & Gas Cos | |||||
| AT&T | Dallas | TX | Dec 17 | 15,139 | 19,812 |
| Texas Instruments | Dallas | TX | Dec 17 | 6,080 | 4,930 |
| LyondellBasell Industries | Houston | TX | Dec 17 | 5,493 | 5,233 |
| Southwest Air | Dallas | TX | Dec 17 | 3,251 | 3,547 |
| Kimberly Clark | Irving | TX | Dec 17 | 3,095 | 3,141 |
| American Air Lines | Fort Worth | TX | Dec 17 | 3,084 | 4,299 |
| Waste Management | Houston | TX | Dec 17 | 2,191 | 1,822 |
| Comerica | Dallas | TX | Dec 17 | 1,234 | 670 |
| Dr Pepper Snapple Group | Plano | TX | Dec 17 | 1,171 | 1,281 |
| Alliance Data Systems | Plano | TX | Dec 17 | 1,081 | 837 |
| Westlake Chemical | Houston | TX | Dec 17 | 1,081 | 558 |
| Celanese | Irving | TX | Dec 17 | 1,075 | 1,030 |
| CenterPoint Energy | Houston | TX | Dec 17 | 1,063 | 686 |
| Torchmark | McKinney | TX | Dec 17 | 831 | 772 |
| Santander Consumer USA | Dallas | TX | Dec 17 | 824 | 1,161 |
| Yum China Holdings | Plano | TX | Dec 17 | 810 | 672 |
| Huntsman Corp | The Woodlands | TX | Dec 17 | 647 | 474 |
| Michaels Companies | Irving | TX | Jan 18 | 606 | 582 |
| Waste Connections | The Woodlands | TX | Dec 17 | 509 | 361 |
| Crown Castle | Houston | TX | Dec 17 | 471 | 374 |
| Lennox Intl | Richardson | TX | Dec 17 | 464 | 403 |
| Cullen/Frost Bankers | San Antonio | TX | Dec 17 | 408 | 341 |
| Prosperity Bancshares | Houston | TX | Dec 17 | 406 | 409 |
| Service Corp Intl | Houston | TX | Dec 17 | 400 | 327 |
| American National Insurance | Galveston | TX | Dec 17 | 396 | 256 |
| Fluor | Irving | TX | Dec 17 | 386 | 547 |
| Sabre | Southlake | TX | Dec 17 | 378 | 328 |
| Trinity Industries | Dallas | TX | Dec 17 | 372 | 567 |
| Quanta Services | Houston | TX | Dec 17 | 354 | 308 |
| Weingarten Realty Investors | Houston | TX | Dec 17 | 351 | 284 |
| Cinemark Holdings | Plano | TX | Dec 17 | 345 | 361 |
| Six Flags Entertainment | Grand Prairie | TX | Dec 17 | 329 | 233 |
| Texas Capital Bancshares | Dallas | TX | Dec 17 | 326 | 241 |
| Kronos Worldwide | Dallas | TX | Dec 17 | 306 | 61 |
| Valhi | Dallas | TX | Dec 17 | 292 | 40 |
| Flowserve | Irving | TX | Dec 17 | 263 | 213 |
| McDermott | Houston | TX | Dec 17 | 260 | 82 |
| Match Group | Dallas | TX | Dec 17 | 252 | 241 |
| KBR Inc | Houston | TX | Dec 17 | 249 | 33 |
| Hilltop Holdings | Dallas | TX | Dec 17 | 243 | 231 |
| Nexstar Media Group | Irving | TX | Dec 17 | 241 | 171 |
| International Bancshares | Laredo | TX | Dec 17 | 222 | 197 |
| Group 1 Automotive | Houston | TX | Dec 17 | 219 | 227 |
| Camden Property Trust | Houston | TX | Dec 17 | 202 | 457 |
| HFF | Dallas | TX | Dec 17 | 202 | 128 |
| Main Street Capital | Houston | TX | Dec 17 | 195 | 138 |
| Venator Materials plc | The Woodlands | TX | Dec 17 | 186 | (108) |
| Cadence Bancorp | Houston | TX | Dec 17 | 183 | 98 |
| FirstCash | Fort Worth | TX | Dec 17 | 172 | 93 |
| LGI Homes | The Woodlands | TX | Dec 17 | 171 | 114 |
| Tyler Technologies | Plano | TX | Dec 17 | 162 | 129 |
| Dave & Busters Entertainment | Dallas | TX | Jan 18 | 156 | 144 |
| LegacyTexas Financial Group | Plano | TX | Dec 17 | 155 | 151 |
| El Paso Electric | El Paso | TX | Dec 17 | 149 | 151 |
| First Financial Bankshares | Abilene | TX | Dec 17 | 147 | 136 |
| National Instruments | Austin | TX | Dec 17 | 147 | 115 |
| National Western Life Group | Austin | TX | Dec 17 | 145 | 153 |
| Rush Enterprises | New Braunfels | TX | Dec 17 | 136 | 66 |
| Tailored Brands | Houston | TX | Jan 18 | 135 | 32 |
| Insperity | Kingwood | TX | Dec 17 | 130 | 105 |
| Independent Bank Group | McKinney | TX | Dec 17 | 122 | 80 |
| Howard Hughes Corp | Dallas | TX | Dec 17 | 121 | 321 |
| TPG Specialty Lending | Fort Worth | TX | Dec 17 | 112 | 137 |
| Primoris Services | Dallas | TX | Dec 17 | 105 | 49 |
| Comfort Systems USA | Houston | TX | Dec 17 | 101 | 101 |
| Summit Hotel Properties | Austin | TX | Dec 17 | 101 | 107 |
| Builders FirstSource | Dallas | TX | Dec 17 | 92 | 22 |
| Alamo Group | Sequin | TX | Dec 17 | 82 | 62 |
| Encore Wire | McKinney | TX | Dec 17 | 80 | 51 |
| Gamestop | Grapevine | TX | Jan 18 | 80 | 505 |
| Genesis Energy LP | Houston | TX | Dec 17 | 78 | 114 |
| Silicon Labs | Austin | TX | Dec 17 | 77 | 64 |
| Stewart Info Services Group | Houston | TX | Dec 17 | 75 | 88 |
| Kirby | Houston | TX | Dec 17 | 73 | 228 |
| American Campus Communities | Austin | TX | Dec 17 | 71 | 102 |
| Southside Bancshares | Tyler | TX | Dec 17 | 70 | 60 |
| At Home Group | Plano | TX | Jan 18 | 66 | 43 |
| Darling Ingredients | Irving | TX | Dec 17 | 64 | 123 |
| Diodes Inc | Plano | TX | Dec 17 | 63 | 25 |
| Triumph Bancorp | Dallas | TX | Dec 17 | 61 | 34 |
| Nationstar Mortgage Holdings | Coppell | TX | Dec 17 | 44 | 29 |
| Atrion | Allen | TX | Dec 17 | 42 | 39 |
| La Quinta Holdings | Irving | TX | Dec 17 | 41 | (1) |
| Argo Group Intl | San Antonio | TX | Dec 17 | 40 | 182 |
| HMS Holdings | Irving | TX | Dec 17 | 40 | 49 |
| US Concrete | Euless | TX | Dec 17 | 39 | 31 |
| Luminex | Austin | TX | Dec 17 | 37 | 20 |
| Orthofix Intl NV | Lewisville | TX | Dec 17 | 36 | 19 |
| Kraton | Houston | TX | Dec 17 | 35 | 13 |
| US Physical Therapy | Houston | TX | Dec 17 | 34 | 38 |
| Conn's | The Woodlands | TX | Jan 18 | 31 | (35) |
| Wingstop | Dallas | TX | Dec 17 | 31 | 25 |
| Integer Holdings | Frisco | TX | Dec 17 | 22 | 1 |
| Sunoco LP | Dallas | TX | Dec 17 | 20 | (16) |
| Exterran | Houston | TX | Dec 17 | 17 | (48) |
| RealPage | Richardson | TX | Dec 17 | 15 | 27 |
| Spirit Realty Capital | Dallas | TX | Dec 17 | 12 | 46 |
| MRC Global | Houston | TX | Dec 17 | 7 | (91) |
| Blucora Inc | Irving | TX | Dec 17 | 3 | (3) |
| SailPoint Technologies | Austin | TX | Dec 17 | (5) | (5) |
| Tier REIT | Dallas | TX | Dec 17 | (22) | (51) |
| Q2 Holdings | Austin | TX | Dec 17 | (26) | (36) |
| Pros Holdings | Houston | TX | Dec 17 | (78) | (75) |
| CyrusOne | Dallas | TX | Dec 17 | (81) | 22 |
| Tenet Healthcare | Dallas | TX | Dec 17 | (101) | 248 |
| Invitation Homes | Dallas | TX | Dec 17 | (106) | (78) |
| Lexicon Pharmaceuticals | The Woodlands | TX | Dec 17 | (142) | (141) |
| Cardtronics plc | Houston | TX | Dec 17 | (155) | 115 |
| Calpine | Houston | TX | Dec 17 | (313) | 159 |
| Fossil Group | Richardson | TX | Dec 17 | (454) | 114 |
| Clear Channel Outdoor Holdings | San Antonio | TX | Dec 17 | (908) | 241 |
| Total 111 Non-Oil & Gas Cos | 59,820 | 63,599 | |||
| Pretax Income Decreasese 2017 vs 2016 | |||||
| ………. mils of $s | (3,779) | ||||
| ………. % | -5.9% |
