There have been many stories over the past few years about the ongoing negative free cash flow (FCF) problem among the shale producers. But two important issues are often overlooked in the stories about negative cash flow. This is a more accurate and comprehensive definition of cash flow than the one used by many, which is simply cash generated from operations minus capital expenditures. When oil prices were $100 a barrel, oil companies invested every penny they could get their hands on into producing more oil. Consider that in 2013, and with oil prices at $100 a barrel, the Top 20 oil and gas companies produced negative $10.9 billion in FCF.

Source: Forbes May 05, 2019 21:56 UTC