Oil Patch Gets Frugal as Investors Urge Profits Over Boom
- Baker Hughes misses estimates, Schlumberger just matches them
- Rigs drilling for crude in the Permian drop most in 19 months
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U.S. shale drillers are tapping on the brakes in the wake of a growing investor revolt that’s held down company values, even as they’ve scored historic production numbers.
The evidence is stacking up: The latest rig count showed the biggest one-week drop in the Permian Basin in 19 months, while Schlumberger Ltd. and Baker Hughes, the two largest oil service companies, blamed lackluster earnings on the reluctance of North American explorers to boost their spending. At the same time, a Bloomberg Intelligence index of shale explorers showed shares have plunged 22 percent so far this year.