Second-quarter earnings brought very good news for the oil and gas industry, with some companies reporting their largest orders quarter since 2015. Cash flow for 22 US publicly traded oil and natural gas producers whose production is at least 60% natural gas rose to US$4 billion in the first quarter of 2018, the highest since the third quarter of 2014. Natural gas production for this group of companies increased by 12% in the first quarter of 2018 from a year earlier, leading to higher upstream revenue and cash flow.
“We feel good about the state of our business. Most of our markets continued to improve in the second quarter,” said D. James Umpleby, CEO and Director of Caterpillar Inc., during the company’s second quarter earnings call. “Our order rates in the backlog remain strong. For certain applications, particularly in oil and gas and mining, we are taking orders for delivery well into 2019.”
Most indicators show that the industry has a whole has transitioned from recovery mode following the latest downturn and is now in growth mode. Orders are coming in, revenue is on the rise, companies are hiring – barring the unexpected (and let’s face it, there is no shortage of unexpected in this industry) most agree that growth remains on the horizon for the foreseeable future.
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