As the E&P sector sets up for fourth-quarter results and 2019 plans over the next couple of weeks, analysts look for oil and gas shale producers in the U.S. to organize around some common themes.

A recent analyst report by the Williams Capital Group LP predicts these themes could include: lower 2019 budgets reactive to strip price shifts; production growth within cash flow possibly resulting in flat or lower production growth; infill drilling and spacing outcomes; and resets to lower commodity price realities and expectations.

“We believe current stock prices and market sentiment already reflect these lower expectations even though they are not reflected in the current stale consensus estimates,” noted Gabriele Sorbara, senior equity analyst with The Williams Capital Group, in the Jan. 22 report.

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