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Sales Performance of XOP Companies by Production Mix

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Sales performance

Within the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), the sales of upstream companies operating with a production mix of crude oil greater than 90% fell by 9% on a YoY (year-over-year) basis in 3Q15. VAALCO Energy’s sales fell 24%, whereas Kosmos Energy’s (KOS) and Denbury Resources’ (DNR) sales fell by 5.4% and 3%, respectively, on a YoY basis. The chart below illustrates the growth of sales of companies operating with different production mixes.

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The sales of upstream companies operating with a production mix of 70%–90% in crude oil rose by 58.4% YoY. The sales of Clayton Williams Energy, Inc. (CWEI), grew by 10.6%. CWEI operates with a production mix of around 73% in crude oil and 17% in natural gas. CWI constitutes approximately 1% of XOP. The sales of Energy XXI (EXXI), Halcón Resources Corporation (HK), and Oasis Petroleum (OAS) grew by 11%, 18%, and 23%, respectively, on a YoY basis in 3Q15.

A slightly weighted production mix in crude oil

Companies operating with a production mix of 70%–90% in crude oil have outperformed companies in the other two production mix categories. The sales of upstream companies operating with a production mix less than 70% in crude oil grew by 22% on YoY basis. This category includes REX American Resources Corporation (REX), Devon Energy Corporation (DVN), and Murphy Oil Corporation (MUR).

In the next part of this series, we’ll discuss the debt of companies with various production mixes in crude oil.

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