hxdbzxy/Shutterstock Save for later Print Download Share Amid bearish macroeconomic indicators and volatile oil and gas prices, US shale producers are again facing questions over their resiliency in a potential downturn. Promised low breakevens and commitments to through-the-cycle shareholder returns will be put to the test if lower prices take hold. But the sector is generally on firmer financial ground than it was heading into recent downturns. The Covid-led economic downturn of 2020-22 reinforced strict investor demands for rigorous capital discipline. In addition, years of low US natural gas prices have kept gas-focused producers on a tight leash. US E&Ps have been working for years to reduce their operating and capital costs, improve operational efficiency and streamline their balance sheets. In addition, consolidation helped concentrate increasing volumes of the US鈥� world-leading oil and gas output into the hands of the more financially robust producers.
