Naming Names: Cash Flow Negative Energy Companies With Big Debt (XLE; XOP)

The proxies we use for 'the industry' are the S&P Energy Sector ETF (XLE) for the integrateds and the SPDR Exploration and Production ETF (XOP) for the smaller guys.

Both set new multi-year lows again today, XOP currently down 5.78% at $22.49 and the XLE at $50.23, down $2.95 (5.55%)

From ZeroHedge:

America's Cash Flow Negative Energy Companies Have $325 Billion In Debt Among Them

With the topic of distress among U.S. oil and gas exploration and production companies becoming more important with every passing day that oil not only continues to drop, but certainly fails to rebound to levels that allow US energy companies to return to a cash flow positive state, we would like to show just how much debt is at stake.
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To do that, drawing inspiration from a tweet by J Pierpont Morgan, we have conducted a quick CapIQ sort through all US energy companies - both public and private - that have at least $100 million in annual revenue, and whose EBITDA less CapEx was a negative number in the LTM period.
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To be sure, this gives listed companies the benefit of not only higher EBITDA in the early quarters when the drop of oil was not as severe, but also of oil price hedges. As such as the true negative cash flow going forward assuming no rebound in the price of oil for the foreseeable future will be far worse as the benefit of the base effect dissipates with every passing quarter and as oil price hedges, which have so far cushioned the oil price blow, are unwound.
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Here are the results:
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There are roughly 80 U.S. companies that had $100mm in LTM revenue and that had negative FCF or EBITDA less CapEx.
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The combined market cap of these 80 companies is just shy of half a trillion dollars.
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The combined Total Enterprise Value of these 80 companies is $775 billion.
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The combined debt of these 80 companies is $325 billion.
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None of these companies are bankrupt, yet. As a reminder, putting as many of these companies out of business, and thus slashing non-OPEC oil production (as OPEC forecasted in its latest bulletin earlier today), is the primary motive behind Saudi Arabia's relentless pumping spree....MORE

(click to enlarge)

Possibly also of interest:

Nov. 30 2015

Apocalyptic Warning On Energy Company Defaults

Nov. 20
 "Thirty-six North American oil and gas producers filed Chapter 11 bankruptcies this year"
Good News! In Commodity Bear SuperCycles™ Most Of The Damage Is Done In The First Six Years
August, 2015 
Oil & Gas Bites Private Equity: KKR Looking At A $4.1 Billion Wipeout 
July 2015 
"UBS Exposes The 'Scary Reality' Of High Yield Energy"
"It’s Happening: Debt Is Tearing up the Fracking Revolution"
April 2015 
Oil: Here Come the Shale Bankruptcies
January 2015
Oil: "The First Shale Casualty: WBH Energy Files For Bankruptcy; Many More Coming" (the most leveraged energy companies)

Citigroup Goes All Medieval On the Energy Sector, Takes Quarterstave and Broadsword to Estimates

These Shale Companies Will File For Bankruptcy First: Goldman's "Best And Worst" Shale Matrix 

And from March 2015's  "Cash Strapped Chesapeake Reduced to Acting as Real Estate Broker for Shale Property Buyers (CHK; KKR)"  

Always remember: In the short run balance sheets don't move stocks, in the long run they rule.