The oil and gas industry has historically been roiled by global economic and political crises, from the oil embargo in 1973 to the Great Recession of 2008 to the onset of the global pandemic in early 2020. However, amid the economic and political turmoil from the war in the Ukraine, rampant inflation and supply chain disruptions, E&P companies in recent weeks reported strong results for the first quarter of 2022, riding the wave of rising commodity prices as record volumes of cash flowed into corporate coffers. Producers successfully absorbed service cost increases and resisted calls to abandon their profits-focused fiscal discipline to generate Q1 2022 pre-tax operating earnings and cash flows that were up 25% and 12%, respectively, from the two-decade-high results recorded in the last quarter of 2021. In today’s RBN blog, we detail the industry’s outstanding results and preview its performance for the rest of the year.
Rollin’ on the River – E&Ps Ride Strong Commodity Price Wave to Record Income and Cash Flow
