Dog days for the wildcatters
The creditworthiness of independents is falling. Barely-positive cash flow and weak enthusiasm for consolidation may not be enough to save them
While US shale production volume continues its unremitting rise, the pioneers of the industry are struggling to keep their heads above water without injections of fresh capital. The latest firm to fail was Sanchez Energy Corporation on 11 August, with $2.275bn of debt. It was the 26th bankruptcy of the year and leaves the total just shy of the 28 that succumbed during the whole of 2018. Corporate law firm Haynes and Boone found that the 192 failures since 2015 involved more than $47bn of debt. It is not surprising that investors are losing patience. Free cash flow—which facilitates capital spending without outside financing or the sale of assets—is a key measure of financial health. The Inst
Also in this section
12 December 2025
The federal government is working with Alberta to improve the country’s access to Asian markets and reduce dependence on the US, but there are challenges to their plans
12 December 2025
The latest edition of our annual Outlook publication, titled 'The shape of energy to come: Creating unique pathways and managing shifting alliances', is available now
11 December 2025
The removal of the ban on oil and gas exploration and an overhaul of the system sends all the right messages for energy security, affordability and sustainability
10 December 2025
The economic and environmental cost of the seven-year exploration ban will be felt long after its removal
