FANG - Annual Reserve Revisions Part IV: Shale Producers

• The EIA issues revision data by whole states or state districts rather than by basin, so some of the reserves and production, but a small proportion, will be from conventional reservoirs.
• Cumulative adjustments and revisions turned negative in 2019 and I expect will show a major decline for 2020, which may well not be fully recovered even if prices rise significantly.
• The average R/P ratio has been steadily dropping, all companies have seen similar falls but the spread among actual values has not seen much compression, which probably reflects the individual company’s philosophy or strategy.

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