Three Things Wall Street Should Look for in Gas Driller Earnings
- Northeast pipeline additions seen boosting Marcellus output
- Investors may reward explorers for spending within cash flow
Marcellus shale oil production in Bradford County, Penn.
Photographer: Daniel Acker/BloombergHurricane disruptions, new pipelines and see-sawing natural gas prices contributed to an eventful third quarter for the companies that extract the fuel from shale basins across the U.S. Here are three things to keep an eye out for this earnings season:
Though Hurricane Harvey temporarily cut gas output from Texas shale reservoirs in August and September, production is poised to rebound in the fourth quarter led by producers in the U.S. Northeast after pipelines like Energy Transfer Partners LP’s Rover project start service. These new lines will probably come close to operating at full capacity, Subash Chandra, managing director and senior analyst at Guggenheim Securities LLC in New York, said by phone.