The Next Shale Fracker Revolution Has Begun - Bloomberg:
Successful revolutions must eventually grapple with the question of what to do with that success. The shale revolution is grappling with that right now.
Two veteran shale executives, Tim Dove and Floyd Wilson, have just stepped down from the top jobs at Pioneer Natural Resources Co. and Halcón Resources Corp., respectively. Dove had set a goal of quadrupling Pioneer’s output to 1 million barrels of oil equivalent within a decade, but the spending required has started to grate on investors. Wilson, meanwhile, sold his old company, Petrohawk Energy Corp. to BHP Group Plc (who eventually sold it onto BP Plc after some unhappy times), and then launched Halcón, which lost money, saw its stock collapse, and wound up drawing the attentions of an activist fund.
And that was just overnight. On Friday morning, another activist, Kimmeridge Energy Management Co., announced it had taken a stake in PDC Energy Inc., an exploration and production company with operations in Colorado and Texas. Kimmeridge wants PDC to overhaul its financial priorities, costs, governance and maybe, given the line about “considering all strategic alternatives,” its entire identity.
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