Tight oil turmoil: 10 takeaways from the week

There’s no other way to put it. Tight oil is in trouble. Producers are dealing with prices that are just 50% of what the sector was founded on. That’s crippling in virtually any industry, and it will stretch even the best Permian producers. The worst positioned companies won’t survive this downturn. Focused US producers require US$58/bbl (Brent) to be cash flow neutral this year. Our team is remodeling everything from asset cash flow, to company EBITDAX coverage, to rig count and projected supply outcomes. As we continue to work through all that, let’s reflect on what we know after the first week of the sector will never forget.