Chart in Focus: Cobalt International Energy’s Cash Flow Estimates



Cash flow estimates

Wall Street analysts expect Cobalt International Energy (CIE) to report year-over-year cash flow of -$51.0 million in 1Q17 compared to ~$22.0 million in 1Q16. On a sequential basis, CIE’s estimated 1Q17 cash flow is higher than -$91.0 million in 4Q16.

In 2Q15, Cobalt International Energy reported its lowest ever cash flow of -$124.0 million. In 4Q16, it reported lower cash flow sequentially and year-over-year.

Wall Street analysts are expecting CIE’s 1Q17 capex (capital expenditure) to be around $127.0 million. That means its 1Q17 free cash flow will be negative.

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Other upstream players

Energy companies in the SPDR S&P 500 ETF (SPY) such as Occidental Petroleum (OXY) and Marathon Oil (MRO) reported $1.20 per share and $0.54 per share, respectively, in cash flows in 4Q16. Occidental Petroleum and Marathon Oil make up ~0.25% and ~0.07% of SPY, respectively.

According to the SPDR S&P 500 ETF Trust prospectus, the “Trust seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500 Index.”

Next, we’ll look at Wall Street analysts’ ratings for CIE.


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