Shale Firms Face Investor Frustration

Shale Firms Face Investor Frustration
Company leaders are being punished for failing to convert vast holdings into profits.

In the northeast, gas driller EQT Corp.’s challenges with well spacing are partially behind a battle with the founders of a company it acquired in 2017. With the backing of major investors including D.E. Shaw & Co., brothers Toby and Derek Rice have been urging directors to depose the current CEO and install Toby Rice in his place, among other operational changes. Laredo Petroleum Inc. and Matador Resources Co. have also faced questions about how they space wells.

“We’re at a point now where operators are really resetting expectations, and they’re taking corrective measures,” said Shak Ahmed, a research analyst at RS Energy Group. “We expect that to actually improve results going forward, but it’s obviously a pretty painful process getting to that point.”

--With assistance from Ryan Collins.

To contact the reporters on this story: Rachel Adams-Heard in Houston at;Kevin Crowley in Houston at

To contact the editors responsible for this story: Simon Casey at, Joe Carroll

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