CHAPTER 3
Cash Flow and Liquidity at Various Crude Prices
Cash flow remains the holy grail of all energy companies and the yardstick by which these companies are measured in terms of their ability to meet capital expenditure plans and growth targets. We first review its impact on capital spending and evaluative criteria common to all oil companies including both independent oil companies (IOCs) and national oil companies (NOCs). We also review the importance of liquidity, cash flow, and leverage on the impact on capital expenditure planning.
