Fundamental business conditions for integrated oil and gas companies will worsen before signs of improvement appear late next year, according to a Moody’s Investors Service assessment based on reduced expectations for crude oil and natural gas prices. Moody’s expects earnings before interest, taxes, depreciation, and amortization (EBITDA) for the global integrated oil and gas industry to contract by 20% or more this year and to recover only modestly in 2016. “This view is based on our expectations of revenue and cash flow declines and a negative free cash flow profile for the industry in 2015,” the firm says. “We expect the industry’s free cash flow to remain negative in 2016.” Free cash flow is the difference between cash flow from operations and investments. Moody’s expects total free cash flow for the integrated companies it rates to be negative by as much as […]