What does Wall Street expect from our Gassers?
Posted: Tue Oct 25, 2022 10:09 am
Wall Street expects Q3 results to show shale gas companies kept cash flowing. S&P Global.
Analysts expect U.S. shale gas drillers to address two major questions in third-quarter earnings reports: how the drillers plan to use the profits from elevated natural gas prices and how inflation will affect their capital budgets.
The top shale gas drillers are expected to report significant free cash flows because gas prices stayed elevated in the third quarter. Analysts said they want to know if that extra cash will be used for dividends, share buybacks, debt reduction or all of the above.
Healthy cash flows among America's oil and gas producers have attracted renewed interest in energy stocks from general investors, according to Jefferies LLC analyst Lloyd Byrne, who resumed coverage of the sector Oct. 18. Investors see shale gas as a safe haven with significant yields, Byrne said. Jefferies' top gas picks are in the Appalachian shales: natural gas liquids-heavy producer Antero Resources Corp. Chesapeake Energy Corp. and EQT Corp., America's largest gas producer by volume.
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RRC has already announce a company record for free cash flow from operations and I expect AR, CRK, EQT and SBOW to do the same. RRC has paid off a lot of debt and they are now increasing stock repurchases.
BTW none of our gassers are exposed to pipeline takeaway capacity issues in the Permian Basin. CRK has the best access to the LNG exporters.
Analysts expect U.S. shale gas drillers to address two major questions in third-quarter earnings reports: how the drillers plan to use the profits from elevated natural gas prices and how inflation will affect their capital budgets.
The top shale gas drillers are expected to report significant free cash flows because gas prices stayed elevated in the third quarter. Analysts said they want to know if that extra cash will be used for dividends, share buybacks, debt reduction or all of the above.
Healthy cash flows among America's oil and gas producers have attracted renewed interest in energy stocks from general investors, according to Jefferies LLC analyst Lloyd Byrne, who resumed coverage of the sector Oct. 18. Investors see shale gas as a safe haven with significant yields, Byrne said. Jefferies' top gas picks are in the Appalachian shales: natural gas liquids-heavy producer Antero Resources Corp. Chesapeake Energy Corp. and EQT Corp., America's largest gas producer by volume.
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RRC has already announce a company record for free cash flow from operations and I expect AR, CRK, EQT and SBOW to do the same. RRC has paid off a lot of debt and they are now increasing stock repurchases.
BTW none of our gassers are exposed to pipeline takeaway capacity issues in the Permian Basin. CRK has the best access to the LNG exporters.