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Nexen, Inc. (NYSE:NXY)
Cash Flow from Operations
\$2,437 Mil (TTM As of Dec. 2012)

Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the three months ended in Dec. 2012, Nexen, Inc.'s Net Income From Continuing Operations was \$-6 Mil. Its DDA was \$0 Mil. Its Change In Working Capital was \$-386 Mil. Its cash flow from deferred tax was \$0 Mil. Its Cash Flow from Discontinued Operations was \$0 Mil. Its Stock Based Compensation was \$0 Mil. And its Cash Flow from Others was \$664 Mil. In all, Nexen, Inc.'s Cash Flow from Operations for the three months ended in Dec. 2012 was \$272 Mil.

Definition

Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Nexen, Inc.'s Cash Flow from Operations for the fiscal year that ended in Dec. 2012 is calculated as:

 Cash Flow from Operations (A: Dec. 2012 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 336.363636364 + 1970.70707071 + -86.8686868687 + -140.404040404 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 0 + 395.95959596 = 2,476

Nexen, Inc.'s Cash Flow from Operations for the quarter that ended in Dec. 2012 is

 Cash Flow from Operations (Q: Dec. 2012 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = -6.06060606061 + 0 + -385.858585859 + 0 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 0 + 663.636363636 = 272

Nexen, Inc. Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2012 was 511.06639839 (Mar. 2012 ) + 1127.43190661 (Jun. 2012 ) + 526.584867076 (Sep. 2012 ) + 271.717171717 (Dec. 2012 ) = \$2,437 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Explanation

Cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Nexen, Inc.'s net income from continuing operations for the three months ended in Dec. 2012 was \$-6 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
 The term depreciation is used when discussing man made tangible assets
 The term depletion is used when discussing natural tangible assets
 The term amortization is used when discussing intangible assets

Nexen, Inc.'s depreciation, depletion and amortization for the three months ended in Dec. 2012 was \$0 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Nexen, Inc.'s change in working capital for the three months ended in Dec. 2012 was \$-386 Mil. It means Nexen, Inc.'s working capital declined by \$386 Mil from Sep. 2012 to Dec. 2012 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Nexen, Inc.'s cash flow from deferred tax for the three months ended in Dec. 2012 was \$0 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Nexen, Inc.'s cash flow from discontinued operations for the three months ended in Dec. 2012 was \$0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Nexen, Inc.'s stock based compensation for the three months ended in Dec. 2012 was \$0 Mil.

7. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Nexen, Inc.'s cash flow from others for the three months ended in Dec. 2012 was \$664 Mil.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nexen, Inc. Annual Data

 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 NetIncomeFromContinuingOperations 487 640 602 521 1,083 1,390 528 567 386 336 CF_DDA 774 610 906 0 1,763 0 0 0 0 1,971 ChangeInWorkingCapital -244 101 -168 -154 -347 96 -24 335 249 -87 CF_DeferredTax -30 97 -86 0 357 0 0 0 0 -140 Cash Flow from Disc. Op. 0 0 389 0 0 0 0 0 0 0 Stock Based Compensation 0 0 0 0 0 0 0 0 0 0 Cash Flow from Others 132 -131 201 1,691 -32 2,042 1,286 1,428 1,804 396 Cash Flow from Operations 1,118 1,318 1,844 2,059 2,825 3,528 1,789 2,330 2,438 2,476

Nexen, Inc. Quarterly Data

 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 NetIncomeFromContinuingOperations -47 205 -102 258 199 42 172 106 60 -6 CF_DDA 0 0 0 -120 0 0 0 0 0 0 ChangeInWorkingCapital 205 -71 33 124 139 -36 -147 434 -4 -386 CF_DeferredTax 0 0 0 0 0 0 0 0 0 0 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 0 0 0 0 0 0 0 0 0 0 Cash Flow from Others 489 236 817 782 -51 442 486 588 470 664 Cash Flow from Operations 647 370 747 1,044 287 448 511 1,127 527 272
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