How the Worst Performing Oil Companies Are Making More Than Exxon

19-Aug-2015

Some of the worst-performing oil companies in North America are getting more for their crude than Exxon Mobil Corp. and other giants. That may not help them for long.

Goodrich Petroleum Corp., the biggest loser in the Bloomberg Intelligence index of North American independent producers, sold its output for $86.49 a barrel in the second quarter, according to data compiled by Bloomberg. Halcon Resources Corp., which is down 49 percent this year, reaped $81.18. Compare that with Chevron Corp., which received an average $54.26, and Exxon Mobil, which got $56.90.

The reason: lack of cash. Smaller companies with riskier credit bought insurance against an oil crash, which locked in higher prices and reassured lenders that they’d get paid back. The hedges have been critical as oil dipped more than 60 percent since June 2014 to a six-year low below $42 a barrel. (by Allison McNeely and Asjylyn Loder, Bloomberg)