Results from second-quarter 2015 financial statements from U.S. companies with onshore oil operations suggest continued financial strain for some companies. Low oil prices have significantly reduced cash flow for U.S. oil producers. To adjust to lower cash flows, companies have turned to capital markets financing and also have reduced capital expenditures. With energy company bond yields widening in relation to U.S. Treasury bonds, some companies may have to reduce capital expenditures further to service their debt.
The 44 companies analyzed contributed much of the growth in global oil production over the past several years. Most of their operations are focused in onshore shale plays in the United States. According to the financial statements, their combined production averaged 2.7 million barrels per day over the first half of 2015, representing approximately 35% of U.S. Lower 48 production.