Twenty-five major U.S. energy companies reported overall net income (excluding unusual items) of $26.0 billion on revenues of $295.1 billion during the third quarter of 2005. This level of net income represented a 69 percent increase relative to the third quarter of 2004 (see EIAs "Financial News for Major Energy Companies "). Domestic Upstream Oil and Natural Gas production operations accounted for $8.5 billion of net income, with domestic refining and marketing operations earning an additional $7.0 billion. Foreign upstream oil and natural gas production operations accounted for $7.6 billion of net income, while foreign refining and marketing operations accounted for $2.0 billion.
Independent oil and natural gas producers, oil field companies and refiner/marketers reported a sharp increase in net income (up 139 percent) during the second quarter of 2005 compared to the second quarter of 2005 (see EIAs "Financial News for Independent Energy Companies"). This increase in net income was due primarily to large increases in the prices of natural gas and Crude Oil, and a rise in gross refining margins of 17 percent year-over-year.