One thing to consider to FCF calculations
Posted: Thu Aug 04, 2022 8:37 am
One thing ignored in my models in 2022 is cash taxes. I use a FCF/ ev metric, should not affect Dan's models as he uses a ebitda multiple
Companies have different positions. In the case of OXY they mentioned that tax payments go up by 1.2 b if crude averages 100
Last quarter, I mentioned that as WTI averages $90 per barrel in 2022, we would expect to pay approximately $600 million in U.S. Federal cash taxes. Oil prices continue to remain strong, increasing the possibility that WTI may average unit higher price for the year. If WTI averaged $100 in 2022, we would expect to pay approximately $1.2 billion in U.S. Federal cash taxes.
Dan's tax expertise will come back in demand
New Democratic proposal is 15 % tax on GAAP earnings or current tax law whichever is higher
Listening to MRO this am they are not in a tax paying middle mode to "later in decade"
First questioned asked by analysts
Companies have different positions. In the case of OXY they mentioned that tax payments go up by 1.2 b if crude averages 100
Last quarter, I mentioned that as WTI averages $90 per barrel in 2022, we would expect to pay approximately $600 million in U.S. Federal cash taxes. Oil prices continue to remain strong, increasing the possibility that WTI may average unit higher price for the year. If WTI averaged $100 in 2022, we would expect to pay approximately $1.2 billion in U.S. Federal cash taxes.
Dan's tax expertise will come back in demand
New Democratic proposal is 15 % tax on GAAP earnings or current tax law whichever is higher
Listening to MRO this am they are not in a tax paying middle mode to "later in decade"
First questioned asked by analysts