Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved year over year due to higher operating cash flow, despite increased capital expenditure. Sequentially, free cash flow and margin weakened as operating cash flow declined while revenue was stable.
- Revenue generation translated into operating cash flow, which after deducting capital expenditure yielded positive free cash flow. The free cash flow margin was moderate, reflecting the balance between operating cash generation and investment spending.
- Compared to the prior quarter, free cash flow and margin were lower, driven by a decline in operating cash flow while revenue was slightly higher. Versus the same quarter last year, free cash flow and margin improved, supported by stronger operating cash flow even as capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$783.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$468.0M
Capital spending and related asset purchases.
FCF margin
15.6%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $5.2B | $1.5B | $603.0M | $905.0M | 17.3% |
| 2024-03-31 | $4.8B | $596.0M | $512.0M | $84.0M | 1.8% |
| 2024-06-30 | $4.9B | $1.4B | $479.0M | $951.0M | 19.4% |
| 2024-09-30 | $5.0B | $1.3B | $468.0M | $783.0M | 15.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow growth
Operating cash flow increased compared to the same quarter last year, providing the primary support for higher free cash flow despite a rise in capital expenditure.
This helped lift free cash flow and margin above the year-ago level, reinforcing the company's cash conversion capability.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generation translated into operating cash flow, which after deducting capital expenditure yielded positive free cash flow. The free cash flow margin was moderate, reflecting the balance between operating cash generation and investment spending.
Compared to the prior quarter, free cash flow and margin were lower, driven by a decline in operating cash flow while revenue was slightly higher. Versus the same quarter last year, free cash flow and margin improved, supported by stronger operating cash flow even as capital expenditure increased.
Monitor the integration of the recently completed EnLink acquisition and its effect on future operating cash flow and capital spending.