Insight
Q2 2020 US Independents earnings recap
Report summary
The second quarter will be remembered by negative oil prices, widespread production curtailments, and 30-40% capex cuts. But there are still some positive takeaways. A few companies managed to generate positive free cash flow during the quarter which highlights the benefits of shale's flexibility. Pioneer and Devon have announced a variable dividend model that will increase payouts during periods of higher oil prices. It also helps reign in spending during prolonged downturns. A handful of their peers quickly said they are interested in implementing a similar payout structure. Companies also said reinvestment rates are expected to be 70-80% of operating cash flow going forward, regardless of oil price.
Table of contents
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Executive Summary
- New tight oil cash flow priorities
- Muted hedging activity
- Gas price optimism this winter
- Impairments continue but less than Q1 2020
- ESG progress continues despite lower prices
Tables and charts
This report includes 2 images and tables including:
- Q2 2020 gas hedging activity
- 2020 asset impairments by company
What's included
This report contains:
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