Revenue growth: WLL, OAS, PDCE, and CXO
Concho’s revenue fell the least
CXO reported the lowest revenue fall among its peers. Its revenue fell by ~11% in 2015 versus 2014, taking a hit mostly due to lower realized prices.
Whiting and PDC Energy’s revenues fell 31% and 30%, respectively
WLL’s 2015 revenue fell 31% compared to 2014. As we saw in WLL’s 4Q15 post-earnings analysis, its quarterly revenue missed estimates in almost every quarter of 2015. PDCE’s 2015 revenue fell 30% compared to 2014.
However, including the settlements on derivatives, PDCE’s crude oil, natural gas, and NGL (natural gas liquids) revenues rose by 31% in 2015 compared to 2014. Excluding net settlements on derivatives, crude oil, natural gas, and NGL revenues fell by 20%.
OAS’s revenues fell the most
With a ~44% fall between 2015 and 2014, OAS’s revenues saw the biggest decline. OAS reported a very poor 2H15 performance. Compared to its peers, OAS has the highest exposure to oil prices, which fell 35% in 2H15. Natural gas prices fell 16% in the same period.
Oil makes up 87% of Oasis Petroleum’s production mix as of 2015, compared to WLL’s 79%, PDCE’s 44%, and CXO’s 63%. This makes OAS the worst affected company as a result of lower realized crude oil prices. Note that all of these companies were hedged in 2015 and are hedged in 2016.
Many other upstream companies are also hedged in 2016 to protect their cash flows. These companies include Chesapeake Energy (CHK), Newfield Exploration (NFX), and Cabot Oil & Gas (COG). These companies combined make up 4.7% of the iShares U.S. Oil & Gas Exploration & Production ETF (IEO).