- U.S. shale focuses on returning capital to shareholders in 2022.
- Deloitte: the shale patch is on track for massive free cash flows of a combined $172 billion in 2022 alone.
- Several large shale producers aren’t boosting production in 2022.
We all know this, no reason for posting, but for the archives:
After years of plowing money into boosting production and thus depressing oil prices, the U.S. shale patch emerged from the pandemic-inflicted slump with unwavering capital discipline which, combined with $100+ oil, is paying off with record cash flows for American oil producers. The largest shale producers have left years of bleeding cash behind, focusing on returning capital to shareholders from the record cash flows they have been generating for several months now. As they report first-quarter figures these days, public companies vow continued disciplined spending and only modest production growth as “drill, baby, drill” is no longer shale’s primary goal.
Investors, in turn, are rewarding the discipline—most of the 20 top-returning firms in the S&P 500 year to date are oil companies, including Occidental, Coterra Energy, Valero, Marathon Oil, APA, Halliburton, Devon Energy, Hess Corporation, Marathon Petroleum, ExxonMobil, ConocoPhillips, Chevron, Schlumberger, EOG Resources, and Pioneer Natural Resources.
On a personal note, I really don't like oil this high; this is not good for America: $6-diesel and $5-gasoline, but I'm so angry with the faux environmentalists, all the Biden administration missteps, and the folks who will still vote for Biden if he runs again in 2024, I really don't care how "high" oil and natural gas go. Color me really, really angry, tonight. I guess that would be purple.
LOL. Now, to binge watch some old Robert Mitchum movies.
My good fishing buddy owned (sold it to his daughter) a trucking company. Tough business! Here is her latest communicate to their customers. (Inflation or just recouping costs??? Hard to tell.) Oh, "FSC" is Fuel SurCharge.
ReplyDelete"The Department of Energy’s U.S. Diesel fuel prices stated on Monday of each week will govern the Fuel Surcharge beginning the following Monday for that week. ****** will be using this listing. Please call me with any questions.
The price on the Department of Energy’s U.S. Diesel fuel prices 05/2/2022 is $5.509. Our current FSC is 49.00%. On May 9, 2022 thru May 15, 2022 FSC becomes 54.00%.
Thank you for your continued support. We are here to provide you and your customers with excellence of service and a fair price always. Please contact me if I can be of additional service."
She has 22 drivers, needs 35 to service her customers and make a modest profit. All of this points to scary times, not only for the trucking industry, but for what will inevitably trickle into the overall economy.
And what do I know? Not nearly as much as Brandon~
Interesting update, thank you. Brandon will update us on inflation on a "prime-time" speech on Tuesday. It will all be blamed on the Russians, Putin, and Ukraine.
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