Private Equity Can't Escape the Pain of Shale Country's Collapse - Bloomberg
After years of poor returns, energy fundraising has plunged
Private equity-backed producers will feel pain with $25 oil
One of the biggest changes in the shale industry since the last bust: Private equity is trying to get out of the game, not in.
Even before crude prices fell off a cliff, the creation of new funds to invest in oil and gas had dwindled. Now, with demand down and output up around the world, hundreds of private equity-backed producers are faced with the same grim math as the publicly traded independent companies that used to buy them but now rarely do -- drilling new wells doesn't make money at $20 oil.
Private equity-backed producers will feel pain with $25 oil
One of the biggest changes in the shale industry since the last bust: Private equity is trying to get out of the game, not in.
Even before crude prices fell off a cliff, the creation of new funds to invest in oil and gas had dwindled. Now, with demand down and output up around the world, hundreds of private equity-backed producers are faced with the same grim math as the publicly traded independent companies that used to buy them but now rarely do -- drilling new wells doesn't make money at $20 oil.
Read the rest of the article online here: https://www.bloomberg.com/news/articles/2020-04-01/private-equity-can-t-escape-the-pain-of-shale-country-s-collapse
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