Latest Permian Driller Earnings Show Shale Play Is Still Booming
(Bloomberg) -- The latest crop of earnings from Permian Basin drillers shows how production continues to boom in America’s hottest oil patch.
On Tuesday, Devon Energy Corp., Diamondback Energy Inc. and Parsley Energy Inc. boosted their projected output for this year while signaling they may spend a little less than previously forecast, according to earnings statements. The rosier picture contrasts with reports last week that sent Concho Resources Inc. and Whiting Petroleum Corp. plunging after they lowered growth expectations.
Shareholders are demanding explorers practice frugality and deliver better returns, which have typically been poor across the shale patch. At the same time, the Permian has suffered some growing pains with the excessive waste of natural gas, not enough pipelines and troubles with well spacing that’s crimping output for some producers like Concho.
Parsley soared as much as 17% in post-market trading, while Diamondback edged 0.3% lower and Devon fell as much 3.1%.
©2019 Bloomberg L.P.