KUALA LUMPUR (Nov 23): Reinvestment rates among US shale oil producers hit an all-time low in the third quarter of 2021 (3Q21), resulting in a record free cash flow in the quarter. The analysis focused on a peer group of 21 public US shale oil producers, excluding majors, that together account for 40% of the expected 2021 output. It said reinvestment rates are calculated by comparing shale producers’ oil and gas capital expenditure (capex) against their cash flow from operations (CFO). Rystad said the analysis showed US$7 billion (about RM29.32 billion) in underspending by shale producers over 3Q21, comparing oil and gas capex with the CFO. It said all but one operator balanced spending in 3Q21, reaching a new level of industry-wide cash balancing.

Source: The Edge Markets November 23, 2021 13:47 UTC