FT: Shale oil and gas producers’ finances lift growth hopes

The independent oil and gas companies at the forefront of the US shale revolution have substantially improved their financial position – boosting confidence that the rapid growth in production can continue. Cash earned from operations by 25 leading North American exploration and production companies is expected in aggregate to exceed their capital spending next year for the first time since 2008, according to an analysis by Factset for the Financial Times.

US oil and gas production has grown sharply in the past decade, thanks to advances in hydraulic fracturing and horizontal drilling techniques, as well as higher oil prices that made it viable to develop shale reserves.

US oil and gas production has grown sharply in the past decade, thanks to advances in hydraulic fracturing and horizontal drilling techniques, as well as higher oil prices that made it viable to develop shale reserves.

As production has grown, however, the industry has been reliant on sustained inflows of capital to finance its drilling programmes – through borrowing, equity issuance and asset sales.
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