The shale gas revolution is over and Appalachia's top producers need to radically change their behavior if they want to survive, according to former EQT Corp. CEO Steve Schlotterbeck.
"The biggest problem facing the upstream industry, frankly, is the industry itself," said Schlotterbeck, who created the nation's largest natural gas producer by volume with the merger of EQT and neighbor Rice Energy in November 2017. "The shale gas revolution has been an unmitigated disaster for any buy and hold investor."
Speaking at Petroleum Update's 2019 Northeast Petrochemical Conference in Pittsburgh, Schlotterbeck said upstream producers must change their orientation away from production growth that has swamped the market to delivering yield for their investors. Slashing drilling efforts to the bare bones while paying a healthy dividend with free cash is the path forward, he said.
"The industry is self-destructing from the success of the shale gas technologies," said Schlotterbeck, now working as a special partner for energy at M&A advisory firm Stone Pier Capital Advisors LP. "They continue to believe that volume growth is necessary for them to be successful, although we now have several years of data that demonstrates the opposite."Read more by clicking here.