The U.S. shale industry is widely expected to become cash flow positive for the first time. For years, even when oil prices were high prior to the 2014 meltdown, shale companies took on debt and issued new equity to finance expensive drilling campaigns. They were growing so quickly, and the revenue generated from a given well often didn’t cover the costs, and in any event, the money was plowed back into the ground to drill another well. Shale E&Ps, by and large, were not profitable. But investors stuck with them on the promise that production would continue to increase, costs would eventually come under control, and the profits would finally begin to emerge. It has taken a lot longer than expected. The bust in oil prices hurt the prospects of turning a profit, particularly for high costs producers, many of whom were ultimately forced out of business. Still, breakeven […]