Burn is most commonly referred to as a company’s operating cash flows, less its capital expenditures. Burn should most often be compared to the company’s current cash levels to determine whether it would be able to sustain operations with the current burn, or if it would need to access capital markets for external funding. In this case, the companies on our list today have burn rates at more than 10 times its current cash levels.
ITC Holdings Corp. (NYSE: ITC) – $32.84
Electric Utilities
ITC Holdings Corp. is an independent electricity transmission company in the United States that operates, maintains and invests in transmission infrastructure. The Company’s customers include investor-owned utilities, municipalities, cooperatives, power marketers and alternative energy suppliers. Its regional infrastructure includes four North Central Multi-Value Projects (MVPs) and the Thumb Loop Project.
- Market Cap: $5,173,169,798
- Cash and Short Term Investments (LFQ): $9,114,000
- Free Cash Flow (LFY): -$231,644,000
- Revenues (LTM): $272,487,000
Cabot Oil & Gas Corp. (NYSE: COG) – $27.60
Oil & Gas Exploration and Production
Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. The Company’s exploration, development and production operations are concentrated primarily in two plays: the Marcellus Shale in northeast Pennsylvania and the Eagle Ford Shale in south Texas. Cabot also has operations in various other unconventional and conventional plays throughout the continental United States, including the Utica Shale in Pennsylvania; the Cotton Valley, Haynesville, Bossier, and James Lime formations in east Texas, and the Devonian Shale, Big Lime, Weir and Berea in West Virginia.
- Market Cap: $11,543,682,365
- Cash and Short Term Investments (LFQ): $13,948,000
- Free Cash Flow (LFY): -$243,197,000
- Revenues (LTM): $464,765,000
Akorn Inc. (NASDA: AKRX) – $46.01
Pharmaceuticals
Akorn Inc. (Akorn), together with its wholly-owned subsidiaries, is a specialty pharmaceutical company that develops, manufactures and markets generic and branded prescription pharmaceuticals, as well as animal and over-the-counter (OTC) consumer health products. The Company specializes in sterile and non-sterile dosage forms, including ophthalmics, injectables, oral liquids, otics, topicals, inhalants and nasal sprays. The Company operates in two segments: Prescription Pharmaceuticals, which is engaged in the sale of branded and generic prescription pharmaceuticals, and Consumer Health, which is engaged in the sale of branded and private label consumer and animal health products.
- Market Cap: $5,228,440,709
- Cash and Short Term Investments (LFQ): $77,948,000
- Free Cash Flow (LFY): -$994,984,000
- Revenues (LTM): $227,828,000
Southwestern Energy Co (NYSE: SWN) – $19.75
Oil & Gas Exploration and Production
Southwestern Energy Company is an energy company engaged in natural gas and oil exploration, development and production (E&P). The Company is focused on creating and capturing additional value through its natural gas gathering and marketing businesses, which it refers to as Midstream Services. Southwestern Energy’s operations are focused within the United States on the development of two natural gas reservoirs located in Arkansas and Pennsylvania.
- Market Cap: $7,668,023,749
- Cash and Short Term Investments (LFQ): $17,000,000
- Free Cash Flow (LFY): -$5,006,000,000
- Revenues (LTM): $933,000,000
Ameren Corp. (NYSE: AEE) – $38.27
Multiline Utilities
Ameren Corporation (Ameren) is a utility holding company that operates in two segments: Ameren Missouri and Ameren Illinois. The Company’s subsidiaries include Ameren Missouri and Ameren Illinois. Ameren also has a subsidiary, ATXI that operates a FERC rate-regulated electric transmission business. Ameren Missouri operates a rate-regulated electric generation, transmission, and distribution business and a rate-regulated natural gas transmission and distribution business in Missouri. It supplies electric and natural gas service to a 24,000-square-mile area in central and eastern Missouri.
- Market Cap: $9,380,261,291
- Cash and Short Term Investments (LFQ): $6,000,000
- Free Cash Flow (LFY): -$308,000,000
- Revenues (LTM): $1,556,000,000
