Tortoise's Rob Thummel in S&P Global

US upstream companies continue on conservative path in Q3

  • Cost discipline, drilling activity main items
  • Capital budgets for 2020 seen possibly lower
  • Some big operators still see efficiency gains

E&P companies are expected to outline a conservative approach to future capital spending and activity levels when they release third-quarter earnings in the coming weeks.
Companies have already said, at conferences and via press releases, that they are focusing on controlling costs and returning cash to shareholders.
“As Q3 reports approach and with a smattering of first looks at 2020 expected from some, the onus is clearly on the sector to ‘follow through’ on early 2019 promises,” Evercore ISI analyst Stephen Richardson said in a Monday investor note.
Those promises chiefly revolve around capital discipline, growing free cash flow and giving more money to shareholders.
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