North American energy companies kept the oil and gas flowing last quarter, but once again failed to produce cash flows to match. A cross-section of 38 publicly traded oil and gas companies at the center of the U.S. fracking boom reported negative free cash flows in the third quarter of 2019. Collectively, these companies spent $1.3 billion more on new capital projects during the quarter than they realized from selling oil and gas. The financial disappointment was widespread: 29 of the 38 companies—more than three- quarters of the sample—didn’t generate enough cash to cover their capital expenses. Free cash flow—the amount of cash generated by a company’s core business, minus its capital spending—is a crucial gauge of financial health. Positive free cash flows Key Findings ï‚· U.S. fracking-focused oil and gas companies reported negative cash flows […]