Land Grab Strategy Not Paying Off in Shale Plays
When hydraulic fracturing and horizontal drilling led to a new wave of domestic natural gas and oil drilling last decade, the common tactic was to buy, buy and buy some more. But companies who have played the shale plays differently, focusing on quality and not quantity, are the victors so far, the Wall Street Journal reports.
“The land-grab approach, pioneered by Chesapeake and copied by its rivals, left companies spending more than wells generated in revenue,” the paper reported, citing Oklahoma City-based Cheseapeake Energy (NYSE:CHK), Ohio’s most-active driller.
Opposite of Chesapeake are two smaller drillers: Denver-based Antero Resources Corp. (NYSE:AR) and Canonsburg, Penn.-based Rice Energy Inc. (NYSE:RICE).Click here to read this full article.
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