Cash flow of U.S. oil producers to surge 68% this year

Experts predict the U.S. oil companies to have 68% higher free cash flow (FCF) as early as 2022, Deloitte consultancy reported. Growing profits are driven by oil price hikes, while increased production of natural resources has remained at 4.5% since the year-start. 

The market is closely watching the controversy between the White House and the oil corporations. The clash comes amid the distribution of skyrocketing profits from high energy prices. 

Exxon Mobil Corp. and Chevron Corp. third-quarter data will be released Friday, Oct. 28. With several analysts noting, a new round of dividend growth and stock buybacks is expected.

Joe Biden, serving as President of the United States, urged producers to invest in oil production by suspending refunds to shareholders. The government's target continues to be lower fuel prices for American consumers. 

These days, companies have been cutting their costs by strictly adhering to the intended course. Historically, this practice wasn’t typical of corporations. Rising energy costs and profits contributed to higher project investments. 

As Deloitte Vice Chairman Amy Kronis said, nearly 40 % of the executives from the 100 major U.S. oil and gas companies consider debt repayment and returning cash to shareholders a top concern. 

A previous survey revealed that oil corporations' FCF could rise to $1.4 trillion over 2022 as energy prices are constantly growing. Therefore, these funds would be allocated in projects with renewable fuels, along with debt repayment and payoffs to investors. 

Analysts predict investments in oil exploration and production in the U.S. to hike another 29% this year, amounting to $108 billion. The figure is well below the growth in corporate cash flows.

Companies are cautious about any investment, as executive director of Deloitte Energy Kate Hardin notes.