The Idiot Index

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Sector
Capital ExtractionApplied to integrated oil, gas, and energy producers. COGS captures upstream extraction and downstream refining/distribution. Markup ratios in this sector are highly cyclical with commodity prices; sector medians normalize across cycles, so the composite z-score is more stable…
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Capital Extraction in Energy · FY 2023

29 of 38 companies · highest first
  1. 1
    VLOValero
    175% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.3887Top 2%
    1.7516
    × buybacks+dividends / net income
  2. 2
    KMIKinder Morgan
    137% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.3887Top 5%
    1.3694
    × buybacks+dividends / net income
  3. 3
    WMBWilliams
    131% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.3887Top 9%
    1.3131
    × buybacks+dividends / net income
  4. 4
    PSXPhillips 66
    120% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.3887Top 12%
    1.2035
    × buybacks+dividends / net income
  5. 5
    OKEONEOK
    111% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.3887Top 16%
    1.1113
    × buybacks+dividends / net income
  6. 6
    NOGNorthern Oil & Gas
    78% of net profit returned to shareholders, 22% reinvested
    sector median 0.3887Top 19%
    0.7763
    × buybacks+dividends / net income
  7. 7
    TRGPTarga Resources
    75% of net profit returned to shareholders, 25% reinvested
    sector median 0.3887Top 22%
    0.7472
    × buybacks+dividends / net income
  8. 8
    SLBSchlumberger
    74% of net profit returned to shareholders, 26% reinvested
    sector median 0.3887Median range
    0.7406
    × buybacks+dividends / net income
  9. 9
    COPConocoPhillips
    74% of net profit returned to shareholders, 26% reinvested
    sector median 0.3887Median range
    0.7404
    × buybacks+dividends / net income
  10. 10
    CVXChevron
    74% of net profit returned to shareholders, 26% reinvested
    sector median 0.3887Median range
    0.7400
    × buybacks+dividends / net income

Not yet covered (9)

These companies are in the Energy cohort but don't have a Capital Extraction computed for FY 2023. Either the underlying inputs aren't tagged in their XBRL filings, the DEF 14A pay-ratio narrative didn't parse cleanly, or this fiscal year hasn't been ingested for them yet.

What this measures

Full methodology →

How much of net profit goes to shareholders rather than back into the business.

Ratio
Capital Extraction
Sector
Energy
Methodology version
v1.0.0
Formula
(Buybacks + Dividends) / NetIncome
Sector context

Applied to integrated oil, gas, and energy producers. COGS captures upstream extraction and downstream refining/distribution. Markup ratios in this sector are highly cyclical with commodity prices; sector medians normalize across cycles, so the composite z-score is more stable than any single-year ratio.

What share of after-tax profit is returned to shareholders rather than reinvested. Universal across sectors — works for banks, insurers, REITs, and utilities where the Shareholder Extraction ratio (which divides by R&D) is undefined. A value of 1.0 means 100% of net income flows back out to shareholders; above 1.0 means the company is funding shareholder returns from sources beyond current-year earnings (debt, retained cash, asset sales).

Source data: PaymentsForRepurchaseOfCommonStock, PaymentsOfDividends, NetIncomeLoss (us-gaap) or ProfitLoss (ifrs-full).