Shale Investors Fear Bloodbath As Earnings Season Kicks Off
Does shale have financial issues to grapple with? Oh yes, one can say that. Is it the same everywhere? Nope. Shale players, as well as shale plays, are no monolith. It’s true, some companies are hemorrhaging money and its hard to see how they can be brought out of the red. Some shale plays are just too demanding for current oil prices and there also is a lot of bubble economics in some projects. But there is also a groundswell of rock-solid businesses thriving on shale. They are not the sparkling darlings of Wall Street but rather look more like mom and pop stores, but they will keep drilling at prices that would be lethal to anyone else because they can. Never mess with a redneck.
The oil majors and shale E&Ps will soon begin publishing second quarter results, which will round out a picture of how the industry fared in the first half of 2019.
