XOM, CVX, RDS.A, and BP: Catching Up after Q4 Earnings PART 3 OF 10
Integrated energy firms’ cash from operations
In this part of the series, we’ll compare the cash from operations (or CFO) for ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP). Among the four stocks, in 2016, XOM clocked the highest CFO at $22.1 billion (excluding assets sales proceeds). BP saw the lowest CFO at $10.7 billion.
Also, in terms of CFO as a percentage of revenues, XOM’s CFO stood at 10% compared to BP’s 6%.
CFO as a percentage of revenues suggests a company’s potential to convert revenues to cash flows. Chevron’s CFO as a percentage of revenues stood the highest at 11% in 2016. The ratio stood at 9% for Shell.
The Vanguard 500 Index Fund Investor Shares (VFINX) has ~7% exposure to energy sector stocks.