The private equity firm says the industry may turn on its side amid the downturn, with exploration and exploitation getting dollars while natural gas assets get hot again.
Of the major shale plays, the Utica is expected to show gas production increases in June, July and August, the EIA said. Though by September, production in the play will also start to slip.
With a cookie-cutter model comes marginal price economics, says Thrust Energy CEO Manatt.
The window for equity capital is narrowing, companies are declaring bankruptcy and yet overwhelming numbers of U.S. E&Ps beat production estimates the second quarter of 2015.
Maynard Holt, the head of investment banking for Tudor, Pickering Holt & Co., sees reasons to be optimistic about future oil prices.
Prices have not yet fallen far enough for an appreciable supply adjustment to occur, researchers say.
The Marcellus and Utica is driving 85% of the growth in U.S. gas production due to the precision and efficiency of fracking in the region, the EIA says.
‘Companies access the capital markets when they are open. But if and once it opens, it should be a floodgate of issuance,’ analysts say.
The news comes on the heels of an anemic first quarter in which permits applications dropped 32% and gas play applications fell by 35%.
The top 10 frack sand suppliers claim 55% of total business, while more than 40 companies make up the remaining percentage.
Equipment auctions are frequent and often the product of insolvency, but equipment should be thoroughly inspected before bids. The equipment has often been cannibalized for parts.