Tortoise’s Rob Thummel in Bloomberg

Shale Overhead Costs Under Fire as Investors Drill Even Deeper

  • Producers have cut growth plans, everyday costs now targeted
  • Push comes as stocks continue to underperform broader market

U.S. shale producers that have reined in growth plans to mollify investors are now facing increasing pressure to slash their own pay and gut bloated offices.

Almost all major U.S. explorers cut their capital budgets after oil prices fell at the end of 2018. The goal: Show they were willing to pay back shareholders at a time when their stocks were under-performing the broader market. But it didn’t stop there, investors are now increasingly focused on general and administrative budgets, or G&A, used for everyday costs.

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