As a bona fide – albeit imperfect – swing producer, America’s shale sector merits close attention. Lost in all the Iran hoopla was the announcement of stellar first-quarter financial results from America’s leading shale producers. Most are now generating significant free-cash flow, meaning incoming revenue exceeds a company’s capital investment, giving them the option of paying down debt or rewarding shareholders with dividends or stock buybacks. Of course, higher oil prices are having a significant impact on shale producers’ financial results. Whether the focus on returns persists across the shale sector in the face of rising oil prices, especially now that the Trump administration has shown it is serious about re-imposing sanctions on Iran’s energy industry, remains an open question.

Source: Forbes May 09, 2018 16:07 UTC