APA - With Low Oil Prices Will Your Favorite Shale Company Prosper Or Flounder?
Introduction
A common refrain this past couple of years was that WTI would trade predominately in a $60 to $80 range.
During 2018, US E&P companies increased output by 2 million barrels a day with WTI averaging $65 a barrel for the year. Of this, 1 million came from the Permian basin where, net of Cushing differentials, they received average pricing of $58 a barrel.
Cushing differentials will evaporate in 2019, thereby significantly boosting net prices for Permian operators. If these companies grew production in 2018 with net pricing of $58 a barrel then, in