Shale Slaughter Continues; Wall Street turned off the tap on credit for drillers

No wonder the slaughter continues, 1:12 Min Nov 4, 2019 by Cineplex Rex:

Beyond all the shale gas spin it is clear to see how fast gas production drops from Marcellus Shale wells when you look at the actual production reports.

U.S. Shale Braces For Brutal Earnings Season by Nick Cunningham, Oct 28, 2019, Oilprice.com

… Some of the largest banks have slashed their credit lines to smaller shale E&Ps. According to Reuters, JPMorgan Chase, Wells Fargo and the Royal Bank of Canada are among some of the lenders that have reduced the amount of credit they are offering to drillers.

… Closing off the ability to borrow money could force more companies into bankruptcy. There have been roughly 199 bankruptcies from North American oil and gas companies since 2015, according to Haynes and Boone, LLP. Through September, there have been 33 bankruptcies in 2019, the highest number since 2016. There were 7 bankruptcies in September alone.

Shale Stocks Are Suffering From A Sentiment Problem by Tsvetana Paraskova, Oct 29, 2019, Oilprice.com

Third-quarter earnings in the oil and gas industry have begun to trickle in at a time when investors have the lowest confidence and interest in U.S. shale stocks in years.

After years of frustration with the lack of meaningful returns from shale firms and amid persistently low oil and gas prices, investors have turned their backs on energy stocks. Banks have too, restricting lending to shale firms who have grown production so far, mostly by taking on more debt.

U.S. shale drillers are not optimistic about the near future, either, admitting that Wall Street has turned off the tap on funding and that low oil and gas prices will continue to depress margins and earnings.

Analysts expect the Q3 earnings of large and small shale companies to be much lower than the profits they booked in Q3 2018, when oil prices were on the rise, just before concerns about global oversupply sent them plunging by around 40 percent in Q4 2018.

Refer also to:

World’s Biggest Fund Manager, BlackRock, lost $90 Billion investing in fossil fuel companies over last decade

Frackers have spilled billions of dollars in red ink. Fracked oil & natural gas have been financial disasters. “Cash flows from fracking-focused oil and gas companies across the US have been negative for decades — even when oil and gas prices were higher than they are now.”

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