Executive: Top 8 Shale Producers Have Destroyed 80% Of Their Companies' Value 2010-2018

[hatrack]

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“The technological advancements developed by the industry have been the weapon of its own suicide,” Schlotterbeck added, referring to the financial impacts of shale gas drilling on shale gas drillers. “And unfortunately, the industry still has not fully realized how it's killing itself. Since 2015, there's been 172 E&P company bankruptcies involving nearly a hundred billion dollars of debt.”

“In a little more than a decade, most of these companies just destroyed a very large percentage of their companies' value that they had at the beginning of the shale revolution,” he said. “It's frankly hard to imagine the scope of the value destruction that has occurred. And it continues.” At the Friday conference, he displayed a slide showing the stock prices of eight major Marcellus shale gas drillers: Antero, Range Resources, Cabot Oil and Gas, Southwestern Energy, CNX Gas, Gulfport, Chesapeake Energy, and EQT, the company that Schlotterbeck ran until he resigned in March 2018. Seven of the eight companies saw their stock prices fall between 40 percent and 95 percent since 2008, the slide showed.

“Excluding capital, the big eight basin producers have destroyed on average 80 percent of the value of their companies since the beginning of the shale revolution,” Schlotterbeck said. “This is not the fall from the peak price during the shale decade, this is the drop in their share price from before the shale revolution began.” Mr. Schlotterbeck credited the shale rush with lowering power and natural gas bills nationwide and offering significant economic benefits since 2008, when he said the shale revolution began. “Nearly every American has benefited from shale gas, with one big exception,” he said, “the shale gas investors.”

Residents of communities where shale gas drilling and fracking have caused disruptions and health issues might take exception to Mr. Schlotterbeck’s categorical description of the beneficiaries of shale gas, as might climate scientists who have warned that the shale industry’s greenhouse gas emissions are so severe that burning gas for power may be worse for the global climate than burning coal.

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https://www.desmogblog.com/2019/06/23/former-shale-gas-ceo-says-shale-revolution-has-been-disaster-drillers-investors

[SWBTATTReg]

1. I thought that the oil producers etc. have been picking up these failed companies for pennies ...

on the dollar (a cheap way to secure additional reserves, at rock bottom prices). Thus, this industry has shot themselves in the foot by basically overproducing.