U.S. upstream oil companies could see their free cash flows swell by 68% per barrel produced in 2022. Rising prices drive profit to grow, while production growth has remained at 4.5% year to date, as reported by Deloitte consultancy on Monday.
A study carried out by the consulting firm revealed the clash between the White House and the oil drillers. Both parties can't agree on how to allocate skyrocketing profits fueled by high energy prices.
According to analysts’ estimates, Exxon Mobil Corp and Chevron Corp are likely to report solid third-quarter financial results Friday. Some analysts expect oil companies to boost dividends and conduct buybacks.
Deloitte notes that companies are now reducing costs and exercising cash discipline. Previously, rising energy prices and profits were the driving force for investment activity.