As the oil market shifts towards capital discipline, free cash flow (FCF) yield is the best way to measure operator quality and value.
I analyzed nine major oil & gas companies’ trailing twelve months FCF, FCF yield, dividend yields, and market caps.
Petrobras delivers the highest FCF yield (27.8%) but faces structural risk.
European majors show better valuation opportunities than U.S. upstream leaders.
Saudi Aramco’s enormous $306B FCF corresponds to a 5% yield, reflecting sovereign backing.
This chart summarizes the key metrics for investors seeking clean, cash-driven value in 2025.