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Slashing spending doing little to boost Appalachian frackers

December 08, 2020

The Fuse:

The natural gas market in the U.S. went into a deep slump earlier this year, a downturn that pre-dated the pandemic.

Much of the price decline can be chalked up to overproduction from U.S. shale companies, which drilled themselves into financial devastation. As a result, the gas sector made substantial cuts to spending and drilling over the past year. But the red ink continues.

However, more recent performances suggest that the same old problems remain. A group of nine Appalachian-focused shale gas drillers reported a cumulative $504 million in negative free cash flow in the third quarter, according to a recent report from the Institute for Energy Economics and Financial Analysis (IEEFA). It was the latest in a long string of losses. “These results follow a dismal decade for the Appalachian frackers,” the IEEFA analysts wrote. 

[Nick Cunningham]

More: Appalachian Shale Drillers Still Losing Despite Spending Cuts

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