Gas Prices Prompt Independents to Prioritize

摘要

Independent producers worked to shore up their balance sheets in light of a further weakening in natural gas prices during the second quarter. The low prices prompted companies to divest non-core assets, seek joint venture deals and increase focus on production from marginal oil plays and natural gas plays with high liquids content. Natural gas prices averaged $3.51/MMBtu in the second quarter, 29% below the first quarter and 68% below the year-earlier period. The sharp decline cut into revenues and prompted producers to make asset divestures and joint venture deals to shore up cash flows.