U.S. shale companies enjoy 'tsunami of cash' on high oil prices

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Operators will rake in about US$180 billion of free cash flow this year at current crude prices

Operators will rake in about US$180 billion of free cash flow — operating income minus capital and maintenance outflows — this year at current crude prices, according to research company Rystad Energy. That compares to huge losses amassed during a decade of fast supply growth that crashed to a halt just before the pandemic.

The shale profit surge has brought a recovery in operators’ equity prices, with U.S. oil and gas producers’ shares defying a broader market sell-off this year.Article content If investors don't return to the space, companies will slowly but surely privatize the entire capital stockShale executives insist they will stick with plans to keep capital spending — and drilling — in check, instead spending their windfall on dividends, debt repayment and share buybacks.

 

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Making hay while the sun shines, a very smart thing to do.

I am so happy for them.

So do the Canadian ones, and postmedia and the CPC are acting like they are not making any profit. BS. What they want is to have their existing profits untaxed while remaining the most heavily subsidized oil industry in any G7 country.

Thanks Justin.

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