Appalachia

IEEFA Research

IEEFA U.S.: Frackers cut capex to $5.8 billion during third quarter, lowest level in a decade

IEEFA U.S.: Frackers cut capex to $5.8 billion during third quarter, lowest level in a decade

Free cash flow surges as capital reductions may mark beginning of end for shale boom

December 8, 2020 (IEEFA) —Facing low prices and weak demand, a cross-section of 33 shale-focused oil and gas producers cut their capital expenditures (capex) to their lowest level in more than a decade, according to an analysis released today by the Institute for Energy Economics and Financial Analysis. Thirty-two of the 33 companies cut capex […]

IEEFA U.S.:  Appalachian frackers report $504M in negative free cash flow despite capex slashing

IEEFA U.S.: Appalachian frackers report $504M in negative free cash flow despite capex slashing

Tide of red ink shows little sign of ebbing any time soon for shale-focused regional gas producers

December 3, 2020 (IEEFA)—Even after cutting their capital expenditures (capex) by more than one-third from the previous year, nine shale-focused gas producers in Appalachia spent a half-billion dollars more during the third quarter on drilling and building projects than they earned from selling oil and gas. Capex investments during the third quarter were the lowest […]

IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers

IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers

Nine major E&P companies collectively lost more than $1 billion over past year

September 10, 2020 (IEEFA) — Even after cutting capital expenditures to their lowest quarterly point in more than six years, nine Appalachian shale-focused gas producers continued to hemorrhage money, reporting more $134 million negative free cash flows in the second quarter of 2020.  Together, they have spilled $1.1 billion in red ink over the past […]

IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry

IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry

Capex reductions, financial hedging offset plunging demand

June 25, 2020 (IEEFA)—Nine fracking-focused gas companies in Appalachia reported a positive free cash flow during the first quarter of 2020—but only after slashing capital expenditures and reporting significant revenues from financial hedging, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA). The positive first quarter results, however, didn’t […]

IEEFA Coal Outlook 2020: Market trends are pushing U.S. industry to a reckoning

IEEFA Coal Outlook 2020: Market trends are pushing U.S. industry to a reckoning

Competition, financing, consolidation, muni/co-op trajectories, export markets

March 30, 2020 (IEEFA U.S.) — A report published today by the Institute for Energy Economics and Financial Analysis (IEEFA) sees the U.S. coal industry continuing to decline through 2020 and beyond. The report, U.S. Coal Outlook 2020: Market Trends Are Pushing Industry Ever Closer to a Reckoning, details issues that will likely persist in driving […]

IEEFA update: In extremis – crisis continues for Appalachian shale producers

IEEFA update: In extremis – crisis continues for Appalachian shale producers

Eight fracking companies hemorrhage $73 billion over ten years as low prices pummel sector

March 25, 2020 (IEEFA U.S.) ‒ Another year, another gusher of red ink. Fracking (Exploration & Production) companies in Appalachia have failed to produce positive free cash flow each year for the past decade, according to an IEEFA analysis released today.  In a briefing note (In Extremis: Crisis Mounts for Appalachian Shale Producers), IEEFA analysts […]

IEEFA update: Appalachia fracking industry faces uphill battle for earnings

IEEFA update: Appalachia fracking industry faces uphill battle for earnings

Companies perform poorly, even compared with other struggling E&Ps

November 26, 2019 (IEEFA U.S.) ‒ Faced with persistently low natural gas prices, exploration and production (E&P) companies with operations in Appalachia continued to struggle financially in the third quarter of 2019. An IEEFA analysis reveals that seven of Appalachia’s largest producers collectively spent half a billion dollars more on drilling than they realized by […]

IEEFA U.S.: Bill to incentivize federal reinvestment in tribal regions of Arizona suggests a model for coalfield communities nationally

IEEFA U.S.: Bill to incentivize federal reinvestment in tribal regions of Arizona suggests a model for coalfield communities nationally

Bipartisan support is possible; Congressional appropriations will be key

Sept. 29, 2019 (IEEFA) — A bill to encourage federal reinvestment in communities hurt by the closure of the Navajo Generating Station (NGS)-Kayenta Mine complex in Arizona suggests a model that could work for coalfield communities nationally, concludes a report published today by the Institute for Energy Economics and Financial Analysis. The report—Bill to Spark […]

and September 19, 2019 Read More →

IEEFA U.S.: Fracking companies in Appalachia struggle financially

Turbulence and desperation are roiling the struggling industry

July 17, 2019 (IEEFA)  ̶  Differences among leaders at EQT, the nation’s largest independent producer of natural gas, highlight the dilemma faced by those looking to drill, drill, drill versus those seeking to rely on traditional supply-and-demand strategies. Neither approach offers much promise, according to a briefing note released today by the Institute for Energy […]

IEEFA report: West Virginia shale development falls short of economic promise

Exhibits “resource curse,” dashes expectations for jobs, taxes, and growth

The nearly six-fold increase in West Virginia’s natural gas production in the last decade, due largely to shale development, or fracking, has fallen short of expectations for economic growth, job creation, and tax revenue generation, according to a new report released by the Institute for Energy Economics and Financial Analysis (IEEFA) and the West Virginia […]

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S&P analysis shows planned power plant retirements threaten 25% of current U.S. coal production

S&P ($): Despite drastic cuts in production, U.S. domestic thermal coal markets could continue to face oversupply for the foreseeable future as about a quarter of U.S. coal production is bound for power plants where customers have already set a future retirement date. An S&P Global Market Intelligence analysis showed that nine coal basins across […]

August 7, 2020 Read More →
IEEFA Energy Finance Conference 2020 roundup: Local leadership, global change

IEEFA Energy Finance Conference 2020 roundup: Local leadership, global change

Business case for renewables-based economic development grows stronger by the day

The transition to renewable energy is frequently advocated on environmental grounds, but the financial case for moving away from fossil fuels is becoming undeniably clear, according to experts speaking during the final week of IEEFA’s 2020 Energy Finance Conference (July 14-30). The annual meeting of international energy, finance and policy experts, which was offered online […]

July 31, 2020 Read More →
IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry
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IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry

Capex reductions, financial hedging offset plunging demand

June 25, 2020 (IEEFA)—Nine fracking-focused gas companies in Appalachia reported a positive free cash flow during the first quarter of 2020—but only after slashing capital expenditures and reporting significant revenues from financial hedging, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA). The positive first quarter results, however, didn’t […]

EIA estimates year-to-date U.S. coal production is down 18.1% compared to 2019

S&P Global Market Intelligence ($): Total U.S. coal production for the week ended April 11 tightened 35.1% year over year to 9.3 million tons from 14.4 million tons, according to data from the U.S. Energy Information Administration. For the 52 weeks ended April 11, production was 664.8 million tons, representing a year-over-year decline of 11.0%, […]

April 17, 2020 Read More →
IEEFA Coal Outlook 2020: Market trends are pushing U.S. industry to a reckoning
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IEEFA Coal Outlook 2020: Market trends are pushing U.S. industry to a reckoning

Competition, financing, consolidation, muni/co-op trajectories, export markets

March 30, 2020 (IEEFA U.S.) — A report published today by the Institute for Energy Economics and Financial Analysis (IEEFA) sees the U.S. coal industry continuing to decline through 2020 and beyond. The report, U.S. Coal Outlook 2020: Market Trends Are Pushing Industry Ever Closer to a Reckoning, details issues that will likely persist in driving […]

IEEFA update: In extremis – crisis continues for Appalachian shale producers
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IEEFA update: In extremis – crisis continues for Appalachian shale producers

Eight fracking companies hemorrhage $73 billion over ten years as low prices pummel sector

March 25, 2020 (IEEFA U.S.) ‒ Another year, another gusher of red ink. Fracking (Exploration & Production) companies in Appalachia have failed to produce positive free cash flow each year for the past decade, according to an IEEFA analysis released today.  In a briefing note (In Extremis: Crisis Mounts for Appalachian Shale Producers), IEEFA analysts […]

IEEFA update: The terrible, horrible, no good, very bad year for oil and gas

IEEFA update: The terrible, horrible, no good, very bad year for oil and gas

Was 2019 the year the music died?

2019 was an especially difficult year for the oil and gas industry.  The energy sector (which does not include renewable energy) finished dead last in the S&P 500, the second year in a row it has held that distinction. In a year of improving oil prices, the energy sector still finished firmly in last place, […]

January 21, 2020 Read More →

Appalachian shale producer EQT Corp. may take $1.8 billion fourth quarter charge

Natural Gas Intelligence: EQT Corp. said in a regulatory filing on Monday it may incur a steep one-time impairment of up to $1.8 billion for the fourth quarter due to a new development plan and low natural gas prices. Under a new management team that took over last July, the nation’s largest natural gas producer […]

January 14, 2020 Read More →

Bad news continues for shale producers in U.S. Appalachian region

S&P Global Market Intelligence ($): With a feeble 44 Bcf (billion cubic feet) of natural gas withdrawn from storage in the middle of a warm winter and prices for natural gas futures contracts crumbling below $2.15/MMBtu (million British thermal unit), Appalachia’s shale gas producers braced for another beating in the stock market Jan. 9 as […]

January 10, 2020 Read More →
IEEFA update: Appalachia fracking industry faces uphill battle for earnings
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IEEFA update: Appalachia fracking industry faces uphill battle for earnings

Companies perform poorly, even compared with other struggling E&Ps

November 26, 2019 (IEEFA U.S.) ‒ Faced with persistently low natural gas prices, exploration and production (E&P) companies with operations in Appalachia continued to struggle financially in the third quarter of 2019. An IEEFA analysis reveals that seven of Appalachia’s largest producers collectively spent half a billion dollars more on drilling than they realized by […]