Restrained US shale set for cashflow pay-off
Rebounding oil prices have boosted company balance sheets, but debt remains the priority over growth
US independents enjoyed a fruitful first quarter in the shale patch, with many companies posting their first profits in over a year as WTI strengthened and free cash flow (FCF) started to recover. But despite better macroeconomic conditions, the sector remains cautious and intends to hold back annual capex, focused instead on reducing sizeable debt. US law firm Haynes and Boone estimates the shale sector recorded 54 bankruptcies over the past year. Companies that outlasted the worst of the pandemic managed to avoid filing for Chapter 11, though at the expense of rising debt. And for many small-cap operators, significant debt maturities are due this year and beyond. “Devon has no intent
Also in this section
13 January 2025
With Namibia, Guyana and Brazil playing starring roles and important innovations being developed, business as usual has never looked so good
13 January 2025
Regional cooperation over the development of gas resources has the potential to bring peace and prosperity to the East Mediterranean
13 January 2025
Significant expansions are underway in both liquefaction and regasification capacity as LNG firms up its position as a long-term solution for the world’s energy needs
10 January 2025
New Petroleum Economist OPEC+ oil survey sees group improve compliance to ensure oil market stability going into 2025
