EOG: A Diamond in the Rough
The party is finally over. After a decade-long, credit-fueled production binge, the fiscally reckless US shale industry now finds itself in a battle for survival. Unlike 2016, this is not a temporary setback – it is a fundamental restructuring of the North American upstream landscape. Highly-levered shale independents who have pursued growth at the cost of free cash flow generation and shareholder value will go the way of dinosaurs and the dodo.
Amid the carnage, keep an eye out for diamonds in the rough: the disciplined, low-cost independents who