Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from the prior quarter and the year-ago quarter, driven by higher capital expenditure and lower operating cash flow relative to the prior quarter. The free cash flow margin weakened sequentially and compared to the same quarter last year.
- Revenue increased from both the prior quarter and the year-ago quarter, but operating cash flow was stable compared to last year and lower than the prior quarter. Capital expenditure rose relative to both periods, resulting in lower free cash flow and a weaker free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were lower, as operating cash flow decreased and capital expenditure was slightly higher. Versus the year-ago quarter, free cash flow and margin also declined, with capital expenditure higher while operating cash flow remained unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.3B
Cash generated by operations before capital spending.
CapEx
$4.0B
Capital spending and related asset purchases.
FCF margin
4.7%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-09-30 | $51.9B | $9.7B | $4.7B | $5.0B | 9.6% |
| 2023-12-31 | $48.9B | $12.4B | $4.4B | $8.1B | 16.5% |
| 2024-03-31 | $46.6B | $6.8B | $4.1B | $2.7B | 5.9% |
| 2024-06-30 | $49.6B | $6.3B | $4.0B | $2.3B | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 52.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the year-ago quarter, contributing to the decline in free cash flow despite higher revenue. The filing notes higher investments in upstream, including post-acquisition spend on legacy PDC assets.
Higher capital expenditure reduced free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter, but operating cash flow was stable compared to last year and lower than the prior quarter. Capital expenditure rose relative to both periods, resulting in lower free cash flow and a weaker free cash flow margin.
Compared to the prior quarter, free cash flow and margin were lower, as operating cash flow decreased and capital expenditure was slightly higher. Versus the year-ago quarter, free cash flow and margin also declined, with capital expenditure higher while operating cash flow remained unchanged.
Monitor the trend in capital expenditure, as it increased relative to both the prior quarter and the year-ago quarter, impacting free cash flow.