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Courtesy Haynes & Boone, Click Here For the Full Report

Only 21% of the projected growth in unconventional shale production in the United States in 2018 will be self funded from cash flow, the rest will come from increasing debt or diluting equity. Whatever "cash flow" used to drill new wells is cash flow that will NOT be used to deleverage old debt. So, in spite of much higher product prices, and lower so called "breakeven" prices, the shale industry is going to outspend revenue in 2018, by a wide margin, again, and continues to get deeper in debt.

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